How brands can adapt their omnichannel commerce strategies to meet consumers everywhere
For years, convenience, e-commerce, and a digital-first mindset have been the emphasis for winning over consumers...
However, new numbers reveal some surprising trends toward something a little different.
Brick-and-mortar shopping is back and better than ever before.
But before you get all nostalgic for the malls of yesteryear, in-store shopping looks a little different in 2024.
The rise of click-and-mortar retail
Click-and-mortar retailing refers to the integration of e-commerce and physical retail spaces.
This omnichannel style of commerce allows customers to shop online and in-store, providing a seamless shopping experience of ease, convenience, and cost-effectiveness.
Initially, this concept was seen as a way for struggling brick-and-mortar stores to stay relevant in an increasingly digital world.
But now, even established brands like Sephora, Nordstrom, Target, and Costco are investing heavily in click-and-mortar strategies.
Services like Buy Online and Pick Up In Store (BOPIS) exemplify this trend, allowing customers to browse and purchase items online and then conveniently collect them at a physical location.
Another example of click-and-mortar shopping is Click and Collect, or buying online and returning in-store (BORIS). Both BOPIS and BORIS increase the chances of a customer making a quick impulse buy while in the store.
And it's working!
According to EMARKETER's Placer 100 Retail & Dining Index, foot traffic to retail and dining establishments continues to rise.
June 2024 saw a 6.8% YoY increase in retail foot traffic, the highest YoY increase in the past 12 months.
What's driving the return to in-store shopping?
Consumers have grown accustomed to the convenience of mobile commerce, and smart retailers are responding by building enjoyable in-store experiences that combine the best of both worlds.
For example, Retail Brew reports that Ace Hardware is redesigning its store aesthetic, putting popular brands front and center, and creating a more immersive, multi-sensory customer experience.
The instant gratification of buying in-store motivates customers to purchase. Nearly 31.5% of US shoppers who discover products in-store make immediate purchases.
Allowing consumers to see, feel, and try on products in-store reduces the chances they'll return it later, saving the consumer time and the brand money. Speaking of which...
...many brands are doing away with free returns by mail. In December 2023, CNN reported that 81% of merchants were charging a fee for at least some methods of returns, based on data from logistics company Happy Returns. To avoid the fees, many customers find making an in-store return to be worth the trip.
How brands can target in-store shoppers
In-store retail media
For starters, you can leverage retailer data and insights to target customers who have shown interest in your brand online and are highly likely to shop in-store.
Costco, Lowe's, Chase, and Macy's have all recently launched joined Walmart, Amazon, and Target in launching their own retail media networks (RMN), which give brands access to valuable first-party data and past purchase insights about their shoppers.
And don't underestimate the power of good ol' print media in-store! Branded counter wraps, promotional posters, wayfinding signage, and floor graphics result in 75% recall, nearly double the recall for digital content (44%).
Placemaking
According to Placer.ai, placemaking is the practice of crafting spaces that go beyond utilitarian needs to foster social interaction.
A few examples include ULTA's in-store hair salons, Nordstrom cafe's, and Lululemon's in-store yoga classes. Many local coffee shops host workshops or events, and these gatherings provide the retailer with additional revenue streams and the consumer with multiple reasons to visit and shop at the same place. They also cultivate community engagement and reduce isolation.
93% of Gen Z survey participants indicated they were "somewhat interested" in trying a new type of offering at a retailer known for something else, with 57% being "extremely interested."
In-store retail pop-up events
If you don't have the resources to maintain a multipurpose event space year-round, partner with an experiential marketing agency to host miniature pop-up events!
Our client, Premier Protein, recently hosted a pop-up event in NYC built by Parasol Projects to support the launch of their protein ice creams.
Photo Credits: Parasol Projects
Offer secondhand or resale options
Many brands, like Lululemon and Patagonia, have a secondhand shop online or in-store where consumers can buy pre-owned goods in excellent condition to save money and shop sustainably.
Others, like Nordstrom and Target, accept used or outgrown clothing items in the store for recycling to reduce fashion's carbon footprint and bring customers indoors.
Data from thredUP predicts that resale growth will surpass the broader retail clothing sector by 900% by 2027! That's a ripe market to tap into.
With increased foot traffic, the support of a trusted brand, and access to valuable customer insights, in-store shopping is back and ready for advertisers to capitalize on.
This article originally appeared in our weekly Paid Media Insights newsletter. For the most up-to-date news and tips to improve your media strategy, subscribe for free here.
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