It seems everyday we read stories about shopping malls slowly becoming a thing of the past. The need to update and revamp the in-person shopping experience is apparent to anyone who has walked through a mall in the past few years. The environment that used to be bustling with kids just hanging out, moms with strollers shopping, and older generations walking the mall simply for exercise, is now mostly empty with low foot traffic and many empty storefronts, leaving a lot to be desired.
There is definitely an opportunity here for innovation and sales growth considering that only 10% of total retail sales in the United States are through e-commerce; meaning that 90% of sales are still made in brick-and-mortar locations.
This tells us that even though the mall experience has significantly declined, consumers still prefer to make purchases in person. Imagine the possibilities if the in-person shopping experience was elevated. That’s exactly what some companies are aiming for with their latest strategies.
Are Airports The New Shopping Malls?
The airport retail industry is growing rapidly. According to the Boston Consulting Group, global travel revenue has tripled in the past 15 years, to $69 billion in 2017. And many retailers are reaping the benefits of travelers having to spend more and more time in airports prior to their flights. If you’ve walked through an airport in the past couple of years, you've most likely noticed the influx of shops seemingly everywhere, and the “shopping mall feel” that airports now have.
Estée Lauder, for example, reported their first-ever $4 billion quarter, primarily due to strong double-digit net sales growth in travel retail. The company says that 59% of prestige beauty buyers' first purchase comes at airports, those are impressive numbers considering that capturing new clients is very difficult in the retail industry. They are also increasing advertising at airports and adding new shopping options like buy online, pickup at the airport. In Korea, they are even testing a concept where products that consumers purchase can be delivered straight to travelers' seats on an airplane.
New Immersive Store Experiences Are Key To Driving Foot Traffic
JC Penney is looking to better utilize the space they have in stores to provide a better customer experience and is testing their ideas at a couple of locations to analyze results. One location in Fort Worth, Texas staffs a stylist in newly decorated women’s dressing rooms, offering customers one-on-one wardrobe and styling advice. And there a large sitting area leading into the dressing rooms so other shoppers can comfortably wait for their friends and family who are trying on clothing.
The company is also testing out classes in the home department of another location, with a television screen and demo classroom. Shoppers can learn a vast array of things, from how to set a modern farmhouse kitchen table or other home decor techniques to hair styling and makeup tutorials.
Toys R Us, who faced bankruptcy and closed more than 800 stores across America just last year, is making a comeback with new concept stores as well. Their new fun and interactive brick-and-mortar locations will be significantly smaller than what we’ve seen in the past. The company is focusing on providing open play areas for kids, interactive displays and even spaces for birthday parties and special events, rather than the warehouse-style large format stores they were known for.
Offering these immersive experiences gives consumers who may not otherwise be shopping, a reason to visit physical store locations and once they are there, are more likely to make a purchase or visit again in the future – making for a great marketing strategy. Anytime a company can provide something more than just a transactional shopping experience, it's a win-win for both the consumer and the retailer.
Sourced from Forbes - contributed by Jia Wertz