There is no doubt that the retail industry is changing. You only have to look at the news to see examples of high street stores closing as sales figures decrease. The biggest reason for this is the availability of online shopping. Major providers such as Amazon are taking control of a market that enables people to complete a purchase on a smartphone using just a few swipes and clicks.
This does not mean that traditional retail companies are dead in the water but it does mean that they have to evolve. They need to know how to make best use of technology and how to communicate in a way that the digital generation can appreciate. Marketing expert Glenda Wynyard caused a stir when she suggested that the Australian public would be more interested in Khloe Kardashian's baby's father than the Royal Commission into the Australian banking system. The truth is that she is pretty much on the mark. Popular culture is an attraction to many and companies need to embrace this mentality and the digital age that created it.
The survival of the high street
The high street retailers that are most in danger of extinction are those that fail to adapt. They may be proud of their history of providing a premium service in exchange for slightly higher prices but now they have competition from online retailers who can provide the majority of the same services over the Internet. They are also faced with the fact that customers can now try out products in store and then make a purchase from an ecommerce site at a reduced cost. Retailers have to start to make use of technology in their bricks and mortar premises, from high-tech augmented reality (AR) dressing rooms to apps that provide directions to the store and offers dedicated to in-store purchases.
A digital retail future
So, what does this digital future for the high street look like? Companies that want to survive have plenty of opportunity to adapt their bricks and mortar store experience.
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* Increased use of AR to enable customers to see how products look when they are worn or when they are placed in the home.
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* Use of Internet of Things (IoT) beacons in store, so that customers can locate products easily, and access more information if they need it.
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* Use of stores as a meeting place and social space and not just a retail outlet. This provides customers with an experience that they cannot get online.
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* Use of stores as click and collect points instead of full retail outlets.
It's possible that the changes will lead to the streamlining of many large retailers; but adapting should enable them to survive. It's also likely that smaller retailers will find it easier to thrive as digital technology makes it easier for them to compete on a level playing field. Many of these smaller retailers also offer the kind of personal service that can entice customers to continue visiting a bricks and mortar store.