Retailers Must Find Ways to Bring in Online Shoppers

This holiday season, retailers are committed to executing strategies to create a hybrid online and in-store shopping experience. This is intended to bring online shoppers into the store while providing the convenience of an online experience at home, and it is a priority for brick-and-mortar retailers. The strategy includes enhanced capabilities to seamlessly cater to shoppers in stores, online and on their mobile devices, according to research from CBRE.

“Retailers are still figuring out omnichannel strategies and creating the digital experiences that consumers want,” Zachary Card, VP at CBRE, tells GlobeSt.com. “The priority for brick-and-mortar retailers with an online presence is leveraging their store as a showroom and a brand, and capitalizing on this brand familiarity with both online and offline sales.  The larger retailers have had an easier time of this so far.”

Retail sales reached a six-year high in the first half of the year, fueled by growth in the economy, according to CBRE. As a result, holiday sales are expected to jump 4.8% this holiday season. “The strong development pipeline this cycle is bringing some fantastic product online,” Card says. “We are expecting more immersive, experiential retail; more fitness, more food, more ‘fun.’ The explosion of mixed-use is leading the transition from street retail to branded retail-office-residential centers where we will see the integration of retail into daily life. 2018 has shown consumers are eating out more than ever; opting for studio fitness; and dropping some dollars on boutique retail, and we expect this trend to continue through 2019.”

Larger retailers have an easier time developing omnichannel experiences, and they should focus on creating an experience both in-store and online. “The larger retailers need to create a special in-store experience this holiday season, and also focus on execution: avoid messy stores and long lines, and keep trained staff at hand for a seamless shopping experience. Smaller, curated selections are making this more manageable,” says Card.

While smaller, boutique retailers will have a challenge creating an omnichannel platform, they can leverage the activity during the holiday season to grow their online presence. “Boutique retailers should be focused on using the holiday spike to turn new customers into followers,” explains Card. “The holiday season brings a lot of first-time customers and offers the opportunity to make fans and devotees of the brand.  The best brands are using social media to stay top of mind and integrated into consumers’ daily lives. On top of that, many boutique retailers are using their customers’ data to study who is buying what, frequency of purchases and using this intel to guide merchandising. Consumers are using credit cards more than ever, which makes this easier.  The world of in-person consumer tracking is only starting to be unlocked.”

For retail owners, capturing consumer traffic and boosting sales is all about creating a strong tenant mix and creating programming that pulls in the surrounding community. “Landlords are learning to curate their retail centers with synergistic tenants—come for the fitness or food, stay for the fashion,” says Card. “Many retail centers now have some daily needs component. To drive traffic, landlords are programming their centers with events, and activating common areas with gathering spots that bring visitors together and nudge them to stay longer and spend more.  The best landlords are creating brands for themselves and their center and learning to keep their retail mix fresh with pop-up and residencies.”