Experts see innovation and pop-up trade

LONDON – The future of physical stores is in question coronavirus pandemics, but experts believe the key to survival will be rediscovery.

For some time now, retailers have been trying to attract customers by creating shopping experiences, but now they need to be creative as shopping habits change and customers become more demanding.

Online shopping has risen sharply since the beginning of the pandemic. In the UK alone, internet sales jumped from below 20% to more than 32% in just three months at the start of the first lock caused by Covid. And experts expect that the convenience of shopping online means that consumers will continue with this habit even after a pandemic.

Meanwhile, almost 50 stores closed every day in the UK in 2020, according to accounting firm PwC.

Both trends show how important it is for retailers to improve their physical presence.

Kristina Rogers, global consumer leader at EY, told CNBC in March that there was a “real redefinition” in the way retailers use their physical space.

“It’s no longer just an exchange of goods,” she said, adding that retailers need to understand who their customers are and what they want.

She emphasized how Goal, one of the largest retailers in the US, has decided to have more space in its stores for Apple products. This effectively enables customers who are interested Apple devices to check them while buying other things in Target. It is also suitable for current Apple users who can combine two trips into one.

“They are recreating the ‘mini shopping center’ in their shop,” she said.

But not every salesperson has such a large area to work with. In fact, some experts believe that successful stores of the future could be the ones that, regardless of size, are constantly offering new things.

“There will undoubtedly be fewer physical stores as we move forward,” Matt Clark, general manager at consulting firm AlixPartners, told CNBC’s Street Signs Europe in March. “But the stores that remain will have to offer an even greater experience and an additional set of services, as well as just the ability to purchase products.”

One way for retailers to stand out is to focus more on pop-up stores. These are spaces that are temporarily open to show a particular line or product, and have become increasingly popular in recent years.

“One of the main opportunities for pop-up stores is creating new research opportunities. It’s not about the consumer going to Ralph Lauren’s store, which is the same today as it was 10 or 20 years ago,” Alex Cohen said, CNBC’s commercial expert. real estate in Compass.

Some well-known brands have already looked at pop-ups as a way to attract more customers. Stella McCartney, a British fashion designer, represents various local businesses in her main store on Old Bond Street in London, to celebrate the lifting of restrictions on retail in the UK, Guess meanwhile opens her first pop-up store in Germany for active clothing.

Pop-up spaces allow retailers to create something “really fresh” while saving on costs, Cohen said.

“Brands have the opportunity to spend much less, they don’t have to commit to a long-term contract, spend less with modular installations and do so very quickly,” he added.