Retailers, such as Macy’s, Sears Robust and JC Penny, who once ruled the consumers shopping experiences, are now seeing a major decline in their in-store Retail sales.
Throughout 2015, Sears and Kmart, combined, closed over 230 stores nationwide and Macy’s (M, +1.51%) continued to lose market share, falling behind online retailers like Amazon. We also saw smaller chains file for bankruptcy, such as Aéropostale, who was set to close about 100 stores, of their 800 years, last year.
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Internet Retailer reports U.S. e-commerce sales growth continues to outpace stores. According to the report, in Q3 2016, the web represented 11.3% of total retail sales when factoring out items not normally bought online like fuel and automobiles—an acceleration from Q2, when the web accounted for 10.9% of total sales.
Despite the continued decline of in-store retail sales, Amazon continues to show profitable gains as it introduces innovative ways to improve the shopping experience. This seems to fall in-line with the advice of Michael Gould, former CEO and Chairman of Bloomingdale’s.
Appearing on CNBC’s Squawk Ally last week, Gould advises shopping has to be a social experience. Families are spending more & more on Broadway and other experiences because they are geared towards a social experience.
To survive, Brick-and-Mortar Retailers must think outside of the box and stop relying on old tactics to drive in-store traffic. Retail is too boring and not enough risk is taken to help keep the in-store experience alive.
One Retailer is innovating ways to create a greater shopping experience. Amazon, who in December 2016, introduced Amazon Go, creating a new shopping experience for customers. Gone is the time spent standing in line, as this store has no checkout required.
Tonkearn if more innovative tactics you can take, The National Retail Federation provides 20 Ideas worth Stealing to help boost your in-store sales.
Keep clients intrigued & know your numbers to adjust strategy as quickly as possible.