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| If Physical Retail Stores Want to Stick Around, They’ll Still Have to Go Digital Posted: 22 Nov 2019 05:31 PM PST By Michael Schnapf It's no secret that the foundation has been crumbling out from beneath traditional retailers. According to statistics published by Coresight Research, a whopping 5,864 stores shuttered their doors in 2018; by spring of 2019, number of closures for 2019 had already exceeded the total number of store closings of the preceding year. Even the giants haven't been spared; traffic at once-bustling department stores has all but evaporated, and Toys “R” Us and Payless ShoeSource have both closed entirely. Kmart and Sears have given up on hundreds of locations. The barrage of closings has hollowed out shopping centers, leaving them shadows of their former lively selves. Ghost malls—centers with 50% or less occupancy—are becoming more common. Dan Bell, a filmmaker who has made a name for himself documenting the proliferation of such spaces, reports that in some cases, malls have become near-wild abandoned spaces. "[Frogs] were actually living in the pool underneath the elevator, the center court elevator," he shared with Business Insider of a mall in Ohio. "The water had pooled up in the well of the elevator, and there were frogs living in the pool, and … there was a bank of fog in the food court just hanging mid-air.” Future of brick-and-mortar?No retailer wants to imagine that their prized store is going to be given up as a home for frogs someday. And yet, the decline of traditional brick-and-mortar sales is as well-established as the cause of its fall: online shopping. Online commerce is just too convenient to pass up. Rather than spending an hour or more driving and walking around a shopping center, a consumer can click through a purchase in the space of seconds from the comfort of their couch. With same- or two-day shipping, shopping online doesn't require buyers to sacrifice much immediate satisfaction, either. DON'T MISS: The Surprising Business Lesson I Learned From Salmon Conservationists [Business Insider] Now, this isn't to say that brick and mortar shopping is outmoded quite yet — but e-commerce is certainly on-track to outpace it. Figures circulated by the U.S. Department of Commerce reveal e-commerce sales saw a 16.9% increase from the third quarter of 2018 to the same period in 2019, and accounted for 11.2% of total sales. Brick-and-mortar sales, in contrast, rose just 2.9% in 2019 from the previous year. The shift away from traditional retail further appears to be proceeding along generational lines: according to Statista, 67% of millennials, 56% of Gen Xers, 41% of baby boomers, and only 28% of seniors prefer online shopping to making purchases in-store. And yet, hope isn't out of reach for brick-and-mortar stores. If traditional retail stores can manage to hybridize into digital offerings, bolster convenience, and once again spark consumer interest in the shopping experience, they may be able to weather the closings storm. Here are some tactics they may take: Embrace online shoppingThe most successful surviving retailers meld online and offline shopping. Retail giant Target, for example, has been notably exempt from the closing epidemic in part because it has successfully built an online ecosystem. Smaller businesses should follow its example and create a presence in the digital market as well—even if they don't have Target's admittedly enormous budget to do so. Today's SMBs have access to on-demand services that make it remarkably easy to build a mobile market stall. Merchants can choose to combine platform offerings from services such as Shopify, Squarespace, and Vend to create a point-of-sale system that matches or even exceeds the capabilities of a large-scale retailer like Target. SMBs now have the ability to market their goods internationally via far-reaching platforms such as Amazon Marketplace. As ironic as it may seem, traditional retailers' best weapons against the encroachment of digital platforms may just be to go digital themselves. However, a digital stall alone won't be enough to save brick-and-mortar stores. To stay afloat, traditional retailers will need to revitalize the shopping experience to convince shoppers to spend their time—and money—at physical stores. Other Articles From AllBusiness.com:
Use AR to cast shopping as an experience, not a choreThe ability of AR (augmented reality) to provide entertainment and novel experiences empowers retailers to recast going to a brick-and-mortar store from a frustrating inconvenience into a diversion during a shopper's day. Consider teen surf and sports retailer Tilly's work with AR as an example. In 2018, the retailer attracted headlines—and foot traffic—by offering an AR-powered back-to-school "experience" for its shoppers. Using the store's app, customers embarked on a scavenger hunt through the store, encouraged by the virtual avatar of popular social media personality Shaun McBride (a.k.a. Shonduras). When shoppers managed to find all three prize "coins" hidden throughout the store, they received a 20% discount coupon. As unconventional as it might seem, Tilly's strategy bore returns: the retailer's in-store foot traffic saw an increase of 30% after it implemented its AR offerings. Shoppers see traditional in-person shopping as a chore. However, if retailers can recast the experience of visiting a brick-and-mortar store as an engaging activity, they may be able to revitalize in-store traffic and bolster consumer interest in in-store shopping. Use cutting-edge technology to improve convenienceVisiting a brick-and-mortar store doesn't have to be time-consuming or inconvenient. With modern innovative offerings, consumers can enjoy a host of convenience-forward offerings, including cashier-less shopping and reduced checkout times. Some retailers are already applying tech-forward strategies to increase consumer convenience. The grocery app Swiftly, for example, empowers customers to scan items as they go, and then use a dedicated Swiftly lane to bypass in-store lines and make checkout a process of moments. With the app, consumers can quite literally sidestep the wait. The convenience and speed that apps like Swiftly offer can help brick-and-mortar stores gain a competitive edge over online merchants, and reorient traditional merchants as the most convenient shopping option. The foundation is crumbling out from beneath traditional retailers—it's true, but with innovative technology and digital-forward growth strategies, brick-and-mortar stores may just be able to hold steady through the online shopping revolution. RELATED: 11 Ways to Create an Awesome Retail Experience The post If Physical Retail Stores Want to Stick Around, They'll Still Have to Go Digital appeared first on AllBusiness.com The post If Physical Retail Stores Want to Stick Around, They'll Still Have to Go Digital appeared first on AllBusiness.com. Click for more information about Guest Post.  |
| 5 Important Startup Lessons You Can Learn from Silicon Valley Tech Companies Posted: 22 Nov 2019 07:30 AM PST Do you wish your startup could be the next Facebook or Google? Being located in Silicon Valley isn't essential to the success of tech startup businesses—but it sure doesn't hurt. Just what is the magic factor that makes Silicon Valley such a breeding ground for successful startups? Even if you aren't starting a tech company, here are some insights that can help some of that Silicon Valley magic rub off on your startup: 1. Go where the resources areCapital is one thing every startup business owner needs, and those who are located in Silicon Valley have access to lots of financing sources. With dozens of venture capital firms in the area, it's easy to connect with potential investors. New entrepreneurs can also benefit from the plethora of tech incubators in the area. What you can do: If you're not located in Silicon Valley, finding capital may not be as easy as bumping into a VC at the corner coffeehouse. That said, every city has its financing sources. You'll just have to make more of an effort to identify them and connect with them. 2. Employees make the businessEmployers in Silicon Valley have lots of employees to select from; after all, the area's elite colleges and universities churn out thousands of well-educated graduates every year. Employees from outside the area flock to Silicon Valley knowing it offers the potential for huge financial rewards. But beyond the dollar signs, what tech employees really prize is the chance to contribute to world-changing products and services, learn new things, and burnish their skills. What you can do: Employees are one of the most valuable resources that any business can have—so you need to go where the employees are. If you need manufacturing workers, for instance, locate your startup in an area where people are seeking this kind of work. Once you've found your team, reward them both financially and emotionally to build employee loyalty. DON'T MISS: The Surprising Business Lesson I Learned From Salmon Conservationists [Business Insider] 3. It's all about innovationSilicon Valley's most successful companies are passionate about innovation. They continually seek to improve, whether by launching new products or finding new ways to provide their service. They don't get hung up on making it perfect—they just keep trying, testing, and failing until they succeed. What you can do: Your startup business idea may not be on the level of Google in terms of innovation, but innovation is still essential to success. Know how your company differs from the competition (and if there's nothing different about it, keep working on that). Consistently try new ideas. Show your employees you trust them by giving them a chance to fail without fear. 4. Understand your customersSuccessful tech businesses are always in touch with their target market and customers. They closely monitor industry trends and watch future predictions. All of this helps them be first to market with the "next big thing." What you can do: You don't have to beat every competitor to market with your business idea, but you do need to keep one step ahead of what your customers want. Frequently survey your target market via social media and in person. Use the insights you gain from talking to your customers to guide your business's next steps, and you'll be more successful. Other Articles From AllBusiness.com:
5. Learn from your competitionStartup businesses need each other to succeed. In the competitive environment of Silicon Valley, startup entrepreneurs can't help seeing what other businesses are doing. Being hyperaware of the competition and learning from competitors' mistakes helps startup business owners get better and better. What you can do: Don't isolate yourself from other entrepreneurs or fear your ideas being stolen by the competition. Instead, take every opportunity you can to connect with other business owners. Whether they're in your industry or not, rubbing elbows with people who think differently will expose you to new ideas you can learn from. RELATED: The 17 Biggest Mistakes Startups Make With Their Investor Pitch Deck The post 5 Important Startup Lessons You Can Learn from Silicon Valley Tech Companies appeared first on AllBusiness.com The post 5 Important Startup Lessons You Can Learn from Silicon Valley Tech Companies appeared first on AllBusiness.com. Click for more information about Rieva Lesonsky.  |
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