10 July 2016

What will the store of the future look like?

The Issue

What will the store of the future look like?

Today’s luxury consumers are constantly connected, time-poor and understand that the quickest, cheapest, most convenient way to shop is, increasingly, online. But while e-commerce is growing fast, the portion of luxury goods purchases taking place digitally — now about 7 percent — is expected to plateau at about 20 percent by 2025.

This means that, for the foreseeable future, the vast majority of luxury sales will still take place in physical stores. And yet three quarters of all luxury goods purchases, regardless of where they ultimately take place, are influenced by what customers do online. What's more, fashion consumers increasingly crave newness — new products, new images and new experiences — at the speed of Facebook.

Where does this leave physical stores, which have yet to really benefit from the digital revolution? Can retailers that have traditionally relied upon product to drive footfall embrace a world where stores must also deliver new tech-enabled services and experiences to every shopper who walks through the door? What will the store of the future look like?

Context
Opinions
B. Joseph Pine II

Op-Ed | Stage Experiences or Go Extinct

Goods and services are no longer enough — stores must deliver personal, memorable experiences, argues B. Joseph Pine II.

John Bricker

Op-Ed | Stores Must Learn to Think Like Facebook

The store of the future will be a social gathering space, with content that’s tailored to the likes and interests of its community, argues John Bricker.

What's your opinion?