The only constant in life is change. Rivers, for example, spring up, dry up, change direction – and so do people. Our shopping landscapes have changed, and the commerce stream now strongly flows in the online and mobile direction.
The retail industry must be adaptable to survive. Here are somethings will prepare you to understand what is occurring and the outlook for the retail industry.
One of the biggest indications of the need to adapt to the e-commerce world has been the steady increase in mall closures across the U.S.
Places Online Magazine expands on the social changes; for the teenagers of the 1990s, malls were a social gathering place – which is not the case anymore. According to CNN MONEY, 25% of enclosed malls will close within five years. Retail competition is at a higher rate that it has ever been before. The retail industry is not going anywhere, its presence has only shifted from physical to virtual. Reports state that by 2030 35% of all retail will be purchased online.
The mall experience isn’t totally extinct, however. It reemerged as outdoor lifestyle centers that changed to adjust to the way people want to shop. In order to entice people to shop at a brick-and-mortar, it has to be an experience, and not just a chore. Retail stores are now centered on the overall experience. Usually within the intricate labyrinth of stores there are entertaining activities such as movie theaters, golf driving ranges, indoor racecar speedways, escape room puzzle mazes, bowling alleys or laser tag facilities. Customers expect more now out of their shopping experience than simply shopping.
What does this mean for retailers—from department stores to luxury brands and even everyday household brands? Adjustments to how companies choose to run their brick-and-motor stores are already happening. For example, as stores consolidate their locations to focus on markets in metropolitan areas, they find less need for physical presence in other rural areas. Third party logistics (3PL) companies have positioned themselves to assist with helping retailers with these changes, as well as others, like upcycling retailer’s shelving and fixtures to install in stores in their larger booming markets.
Retailers choose to bring in a logistics partner to manage the burden of storing, transporting and installing FF&E into retail or restaurant operations. That partnership frees up the retailer to focus on the customer and be nimble to their needs. Solutions include not just storefront, but direct to consumers as well. Suddath® leads the industry with state of the art e-fulfillment warehouse facilities that excel in omni-channel distribution.