- October 5, 2018
Retail Redefined
I grew up a “Toys-R-Us” kid, so I must admit that I was saddened to say farewell to a childhood sweetheart, Geoffrey the Giraffe, the iconic chain’s mascot. The toy chain’s demise was primarily due to unmanageable debt, fierce competition (not just from Amazon), and poor timing. We can’t help but feel uneasiness when we see a national retailer close its doors permanently. However, don’t let this chapter in the retail storybook fool you. Brick-and-mortar retail is far from dead.
The retailers risking endangerment are those that have not successfully adopted and properly executed a seamless customer experience across e-commerce and in-store experiences. Successful retailers are redefining an industry by paying attention to consumer behaviors, and TouchPoint360 is along for the ride.
Consumers are still spending most of their money in stores rather than online, but online shopping is growing rapidly each year. Most of the successful, traditional retailers have been investing and improving their online experience for the past five to ten years. We also continue to see traditionally-online stores investing in brick-and-mortar stores now. By 2021, there may be up to 3,000 Amazon Go locations, a concept that would compete for business from chains such as 7-Eleven and similar convenience stores.
The Hardware channel is another prime example of a growing retail sector. TouchPoint360 has completed over 450 category resets in 2018 and is on track to complete the highest number of new store and store remodels ever in company history. Although not all co-op retailers in the hardware channel are on a clear path we can see, the industry is arguably in its most successful cycle. Some hardware retailers are breaking records for capital projects completed in 2018.
Retailers are making investments both in their online and brick-and-mortar stores, which is good news for consumers. What will we see next? TouchPoint360 will continue to partner with top retailers making impactful changes in this industry. Sorry, Geoffrey, but it’s just survival of the fittest.