Re-imagine retail: Why store innovation is key to a brand's growth in the ‘new normal’, digitally-connected and transparent world

Abstract

In five years’ time, the retail environment for brands and consumers will be very different. Consumer behaviour is changing as a growing number of smarter, digitally-connected, price-conscious consumers exploit multiple shopping channels to get the product they want at the right price. Brands are under increasing pressure to keep costs down and deliver value. Against this backdrop, there is a huge opportunity for brands to re-invent the physical store so that it actively drives growth. Instead of seeing ecommerce as a threat to their traditional retail networks, brands need to build an etail operation that works alongside and supports the physical channel, as part of an integrated ‘omnichannel ecosystem’. There is also huge potential for stores to be a vital part of a more efficient, consumer-focused logistics network. The in-store environment can also be used to retail a brand's point of difference, and drive consumer preference in the face of generic, price-led, internet-only competition, and ultimately add value to the brand. Innovation, based on consumer insight and focused around store function and format, is crucial if brands want to meet the challenges of tomorrow's retail market head-on.