Retailers Bet on Brick-and-Mortar
The landscape of retail is witnessing a robust revival of brick-and-mortar stores in 2023, as detailed in a Talk Business & Politics article. This resurgence comes amidst the backdrop of the once-predicted dominance of online shopping, which has not fully materialized to the exclusion of physical stores. Retail experts now emphasize the widening gap between successful retailers and those lagging behind, with physical stores playing a pivotal role in this differentiation.
Carol Spieckerman, president of Spieckerman Retail, asserts that 2023 will mark "the year of the store." She highlights that despite some retailers needing to play catch-up or reduce their store footprints, there is substantial potential for growth in the brick-and-mortar sector. Spieckerman stresses the necessity for retailers to offer a range of shopping options, including physical stores, to meet consumers where they are. Those who fail to expand their consumer engagement strategies risk falling behind.
The relevance of physical stores extends beyond traditional sales; they are crucial for enhancing brand visibility and complementing digital strategies. Spieckerman points out that even predominantly online giants like Amazon are increasingly venturing into physical retail spaces, underscoring the essential nature of a multi-channel approach to achieve true scalability in retail.
The discount retail sector, particularly dollar stores, is experiencing significant expansion without heavily investing in omnichannel capacities. Chains like Dollar Tree, Family Dollar, and Five Below have reported notable increases in-store visits, with plans for substantial store openings throughout the year. This growth illustrates the continued consumer demand for affordable shopping options accessible through physical outlets.
Moreover, many retailers are leveraging their stores as multifunctional spaces that serve not only as shopping destinations but also as fulfillment centers for online orders, thereby enhancing the efficiency of their distribution networks. For example, Walmart and Target are using their stores to expedite online order deliveries, which has tripled sales to over $1 billion monthly for Walmart.
Physical stores are also increasingly seen as community hubs offering ancillary services such as healthcare. Walmart plans to expand its healthcare clinics, and Best Buy is deepening its integration of health services, indicating a trend toward utilizing retail spaces for services beyond traditional retail.
Additionally, brick-and-mortar locations are becoming vital for handling returns, with companies like Kohl’s and Hibbett Sports forming partnerships to facilitate easier return processes for online purchases, enhancing customer convenience and driving foot traffic.
The early signs of increasing shopper traffic in malls and shopping centers further validate the enduring appeal of physical retail experiences, suggesting a promising outlook for brick-and-mortar stores as they adapt to modern retail dynamics and consumer preferences.
