While it seems there’s always a new conversation about the “retail apocalypse”, Goldman Sachs disagrees with the way the future of retail has been framed. In the era of e-commerce, many retail stores struggle because they remain stuck in the past – not because stores no longer matter. The report details how retailers need to make clear decisions about what they want to be and how that won’t look the same for everyone.
Some important statistics to note:
- More than 15 million jobs are tied directly to store-based retailers.
- 85% of retail sales are still made in physical stores today.
- Even with e-commerce’s recent growth rate of 15%, that still leaves 70% of retail sales via the store in five years’ time.
Retail isn’t dead; it’s changing. Consumers still want to shop in brick-and-mortar locations, but the experiences haven’t evolved quickly enough to satisfy their attention. Smart retailers must design their in-store, marketing, and operations strategies with new retail technology and purposeful interpretation of data. They must learn from what makes e-retailers so successful – like data tracking to personalize recommendations – and employ an overall sharper focus on customer experience.
Read more on CNBC.
