Think back to your last shopping experience at a physical store. Did you find what you needed easily? Was it available to take home there and then? And once you got to the check out, were you faced with a long queue to pay for it?
When we consider the effort of heading to the high street versus the ease of online shopping on the sofa, it’s not surprising that consumers are frustrated with the in-store experience. But what is worrying, is that so few retailers are actively tackling this problem.
Capgemini’s Digital Transformation Institute report “Making the Digital Connection: Why Retail Stores Need a Reboot” consulted 6,000 consumers and 500 retail executives from nine countries and revealed a concerning trend towards the demise of physical stores across the globe. Customers are simply not getting what they expect from an in-store experience.
The report found 40% consumers think shopping in stores is a chore. In fact, more than one third would prefer to wash the dishes over going shopping. These frustrations are rooted in a lack of provision for the things we take for granted online. In particular, shoppers are annoyed at not being able to compare products, having to stand in long queues, being targeted by in-store promotions that are not relevant to them, and simply not being able to find what they went in for.
These barriers are driving consumers into new purchasing paths, away from traditional brick and mortar stores. More than half of those who participated in the study are willing to buy directly from manufacturers, and even more from the big technology players – Google, Apple and Facebook – if they are partnering with manufacturers for last-mile delivery.
The challenges and opportunities for retailers
So why are retailers being slow to respond? It seems most are aware of the growing jeopardy facing their stores, yet 40% still haven’t done something as simple as implement instore Wi-Fi. What’s more, retail executives grossly overestimate the importance of physical stores in the purchasing journey, compared to what consumers think. For example, 81% of retail executives believe a store is useful for comparing products, whereas just 46% of consumers felt it was.
Positively, retailers recognise how important it is to embrace technology and digitise stores, but they are hindered by existing investments in technology and by the capabilities of their instore staff. One of the biggest hurdles executives revealed was not being able to accurately measure return on investment from their in-store digital initiatives, even when there was a high usage and uptake from customers.
More good news is that consumers still see the high-street playing a role in their lives. But they have a different vision of shopping in the future – the retail store+. The retail store+ goes beyond traditional retail and serves a higher function than simply selling a product – it’s an entire experience.
The retail store of the future
The retail store+ will successfully blend the physical with the digital. Consumers are already comfortable using digital devices and tech instore – our research showed that when technology is available instore, 68% of customers will use it, whether tablets or kiosks.
Target is one brand that is leading the way in digitising the instore experience. Shoppers at Target can use a mobile app that shows them exactly where the product they want is located in their store, using a pin feature which is similar to Google Maps. It is also investing in new technologies, including testing a pop up store in New York – Target Wonderland – where shoppers add items to a virtual cart using RFID tags. They can enjoy wandering round the store without needing to carry any of their purchases, and simply pay for and collect their items at the end of their visit.
Behind the customer experience, the evolution of digital retail management solutions is racing ahead. In store, associate-focussed solutions which help managers guide in-store staff to the places where customers are, will allow associates to move in real-time to where they are needed. And some start-ups are already perfecting frameworks for digital solutions that alert customers who have placed a ‘click and collect’ order when they’re near a store where they can collect their item.
There’s a rich array of new technology and digital solutions that will see the high street store evolve. Now it’s up to the retail industry to adopt new practices, embrace technology and transform the customer experience. Either way, the high street is going to be a very different place in the next few years.