How do traditional retailers compete against today’s e-commerce when they have the expense of brick and mortar locations? The look of retail is changing with e-commerce sites offering lower prices and the ease of shopping from home on your couch. Since the Internet has changed the way people shop, how does a retailer keep their brand alive?
We see more real estate developments with the so called “Live, Work, Play” concept. This is not so much a new concept, I think we Baby Boomers called it “Neighborhoods.” I remember as a kid walking to the baseball diamond, the five and dime, and the pharmacy. Everyone along the way knew my family and my name. That was truly a great way to Live, Work, Play. I see more suburban towns revitalizing their downtown areas with specialty shops, new restaurants and even more family-centric activities. This keeps the local residents supporting the businesses in their town. Consumers are still looking for the full service department stores and malls but they are expecting more or something different from the past. Now that being said that is what consumers want but most retailers can’t afford to offer the same sales experience of the past unless they are a specialty shop or high end. I do see more retailers using more technology to be more interactive with the consumer like Oracle Retail Release 14 calling it “Commerce anywhere” linking ecommerce and retail store with merchandise pick up at a location, similar pricing and ability to shop at any of the retailers distribution points also see more loyalty programs and price matching of online prices in stores.
Now retailers with bricks & mortar are adding interactive entertainment to drive consumers into the store for example Bass pro shops with a theme restaurant in the store and fishing tournaments. You can also see some of the malls across the country with bowling alleys, amusement parks, movie theaters and casinos attached to the mall.
Like any business times change and the open minded companies that are willing to adapt early succeed and the ones that fight the change do not.
Rick Kaplan is media director at the New England Real Estate Journal, Norwell, Mass.
