News

Physical, digital retail merging, reveals study

April 11, 2019

Traditional physical retail and online retail are increasingly merging into a seamless shopping experience, according to the National Retail Federation's latest State of Retailing Online study.

The prime driver, according to a release on the study, conducted by Forrester Research, is that retailers are using both platforms to better serve the consumer.

"This report shows more than ever that retail is retail regardless of where a sale is made or how the product is delivered," NRF Vice President for Research Development and Industry Analysis Mark Mathews said in the release.

"Products ordered online are increasingly picked up in-store or shipped from a nearby store, and digital technology being used at bricks-and-mortar locations lets retailers help customers find what they want or make the sale even if the product is out of stock. Traditional retailers have seen the opportunities of online selling for years now, and those selling online increasingly see that stores are part of the key to success."

The study revealed 43% of store-based retailers surveyed expect a net increase in the number of bricks-and-mortar stores they operate by the end of 2018 compared with 2017, and only 16% expect a net reduction. Retailers are also testing store formats such as opening some type of pop-up store (24%), and opening warehouses or distribution centers (12%).

"More brands plan to open stores versus close them this year, which proves that the physical retail store is not doomed as many think it is," Forrester Vice President and Principal Analyst Sucharita Kodali said in the release.

"Smart retailers understand that the two go hand-in-hand, but customer obsessed retailers will continue investing in areas like omnichannel to provide customers with the seamless on and offline experiences they expect and now require. This year's survey proved that while they have work to do in 2018, retailers are moving in the right direction."

Personalizing the shopping experience is top priority, cited by 15% of store-based retailers, and those polled are focused on using technology to better enable store associates to help customers (12%), as well as improving the in-store experience (1%). To support store associates, 61% plan to spend more on employee training.