It is the multimillion-pound question keeping many fashion retail bosses awake at night: what does the future of bricks-and-mortar stores look like in a post-Covid retail environment?
Uncertainty about the role of the store is nothing new in fashion retail but the accelerated adoption and rise of ecommerce during the pandemic’s national lockdowns has only made the question more pertinent. While the physical, social and leisure elements of stores are still appealing to many, will footfall bounce back on high streets and in shopping centres?
A new consumer research report from ecommerce, delivery and fulfilment expert Metapack (click here to read the report in full) aims to provide retailers with a blueprint to make sure their store estates not only survive, but thrive, working hand in hand with digital channels to drive sales both online and offline and get shoppers back into stores. Offering seamless solutions across shipping, tracking, returns and more, Metapack already partners with some of fashion’s biggest names. It works with Boohoo, Asos and Adidas, among others.
There are undoubtedly choppy waters ahead. More than half (54%) of consumers have shopped less in store since the pandemic, according to Metapack’s research. What is more striking is that 42% plan to shop less in store in the future.
But despite the myriad challenges ahead, Duncan Licence, vice-president of global product at Metapack, is confident there is a place for stores in retail’s future – if managed effectively and efficiently.
“There’s long been a narrative that ecommerce is killing the store, but that’s nonsense,” he tells Drapers. “Of course, the pandemic has accelerated the pre-existing move to shopping online – there’s been a huge upsurge in ecommerce volumes. But the golden thread running through our report is that stores are essential to the retail experience.”
One of the key findings of Metapack’s report – and a current hot topic in the retail world – is the power and potential of stores as micro-fulfilment centres, enabling businesses to “ship from store”. By putting existing shops to work as part of the ecommerce boom, the report argues that retailers can maximise their store inventories, reduce costs to deliver and strengthen their express delivery offers.
Health and wellness retailer Holland & Barrett, for example, has worked with Metapack to fulfil online orders from its stores, which has added flexibility to its fulfilment options.
“A lot of retailers adopted ‘ship from store’ very quickly during the pandemic because they had inventory sitting in closed stores [during national lockdowns] and their warehouses were at risk of being overwhelmed by the surge in online demand,” Licence adds.
“‘Ship from store’ and other services will also be vital for retailers to retain any new customers they gained during the pandemic. Stores tend to be closer to the consumer than warehouses, meaning the inventory they hold is closer to the consumer, too. That means shipping from store can get product to customers both quickly and conveniently.” He adds that retailers need to focus on technology, logistics and training to get “ship from store” right.
“There are building blocks retailers need to have in place to make ‘ship from store’ successful – the right tech to underpin this strategy is really important, as are operational concerns, such as the space in store to pick and pack [online] orders. You also have to really engage store colleagues and make sure they understand why ‘ship from store’ is so important, and why it is something they’re being asked to do.”
The importance of driving online customers into bricks-and-mortar stores is another key theme of Metapack’s report. As today’s consumers become increasingly accustomed to ordering from the comfort of their homes, they need to be given more reasons to visit physical stores.
Promoting in-store click and collect as a cheaper and more sustainable option is one strategy retailers can use to funnel digital demand into their retail stores, the report argues. It found that an impressive 40% of UK consumers plan to increase their use of click and collect post-Covid, and almost 30% use it as an opportunity to browse in store.
“Click and collect will only become more important,” Licence explains. “Home delivery has been great while consumers have been stuck indoors, but more people are heading back to the office and don’t want to miss their deliveries. Having their items delivered to their local store is more convenient and is often cheaper.
“Increasingly, customers are also choosing click and collect because it is also better for the environment. Retailers therefore need to ensure they are creating an immersive, convenient experience in their stores that will encourage online customers to browse and make additional purchases. Consumers still crave interaction. Wanting to touch and feel products in an immersive way is baked into us.”
As consumers adapt to post-pandemic life, retailers need to ensure they are providing a five-star experience – regardless of the shopping channel. Metapack’s research shows that almost half (45%) of consumers plan to flex between online and physical shopping. To get it right and win consumers’ loyalty, retailers need to clearly communicate their delivery promises; never overpromise; provide tracking for click-and-collect orders; and offer in-store returns.
“One of the most important things is communicating with customers, and being able to react quickly and flexibly if and when things do go wrong,” adds Licence.
“Customers understand that sometimes a parcel is delayed or gets lost, but the best retailers are able to give customers a good experience, even when mistakes happen. If you navigate the challenges well, customers will remember and shop with you again.”
The future of the store hinges on retailers using their bricks-and-mortar locations in multifaceted ways. No longer a place just to simply buy products, stores must act as hubs of experience, retail theatre and convenience for the customer, while also providing the social and inspiring elements they have missed while stores have been closed through lockdowns.
“To do well post-pandemic, retailers need to brilliantly navigate the complexity around using stores as part of their omnichannel offer,” concludes Licence. “The smart retailers are already understanding that stores can be used in a number of different ways – it is about making your stores work harder for you.
“Stores can be used in many ways: to deliver truly memorable experiences to customers, as micro-fulfilment centres, or as a way to drive additional purchases when customers come to collect products.”
When stores are great, customers love shopping in them. So, even though stores may not be dying, they must adapt – and fast.
