TREND MILL
The Retail Store Is Not Dead (Yet)
After the devastating impacts of the pandemic, retail is being forced to redefine the role of the brick-and-mortar store
Retail has endured one of its most difficult spells to date. The pandemic has ripped through the heart of the retail sector, severely reducing customer footprint and forcing periods of closure for stores not deemed essential. Many never reopened. A record 12,200 stores closed in the U.S. in 2020, and despite the pandemic showing signs of easing, similar numbers are predicted for 2021. Worse, analysts believe the repercussions of the pandemic could linger long after it subsides, estimating that roughly one in every 11 stores will close in the next five years.
If conditions weren’t challenging enough, the continued consumer shift to e-commerce and super-quick home delivery has further impacted physical retail recovery. The shopping landscape is rapidly changing, and consumers are being offered more and more ways to shop without entering a physical store. For example, IKEA Place allows potential customers to visualize furnishings in their homes without leaving them. Snapchat and TikTok are engaging users in new shopping experiences, like buying directly through the apps, launching exclusive drops and using AR technologies…
