Arquivos Lojas Físicas Pós Pandemia

“With the acceleration of e-commerce, what will be the future of physical stores?” Think with Google.

In the article “Physical stores and the (re)connection of people and spaces”, we talk about the role of the physical store as a fundamental element for increasing online sales. Studies carried out by some brands clearly show that omnichannel strategies should become part of the strategy and that there is a direct relationship between the increase in online sales in the same region as the physical store.

“Physical stores will not disappear, but they will be transformed. In this context, the future of online stores is directly related to omnichannel (…) Omnichannel retailers will take the lead. Being omnichannel is no longer a differentiator, it is essential”, Think with Google.

The key is having omnichannel or phygital perspectives. Phygital is a new term that has been used to indicate the integration of physical and online experiences. The best medium takes the consumer’s needs into account.

Isabela Capeto + Melissa Exhibition and Experience

The Melissa Gallery at Oscar Freire Street in São Paulo has a new installation that explores the collab between the brand and the stylist Isabela Capeto and her daughter, Chica Capeto.

“To launch this collab, inspired by the PANCs, Studio Vingú proposes an installation/garden overflowing with sinuous shapes and volumes, from the atrium to the interior of the Gallery. Flowers and zodiac signs float over the exhibition space, creating a floral and luminous atmosphere. A green lounge was also placed in the installation, creating an area to experiment the products. The goal is to bring an urban touch, showing that nature and colors always persevere, even in unpredictable scenarios”, Finíssimo platform.

The installation presents elements that were inspired by PANCs (Non-Conventional Food Plants) and by Brazilian flora in general.

“Specialists and research institutes point out that the trend for physical stores is now to change concepts and become a space for experiences, a showroom to attract customers. In fact, before the pandemic, Melissa was already making investments to transform its physical stores into a provider of omnichannel experiences, connected to other mediums, including digital”, Fíníssimo.

Reversal of paths: digital brands invest in physical retail

This is a recurring theme in current days. The content platform FFW carried out research to understand how the market was behaving and interviewed brands that recently presented new addresses.

A study made by the National Confederation of Commerce of Goods, Services and Tourism (CNC) revealed that 75.2 thousand stores had closed their doors in Brazil in 2020.

Even though everything indicates the future of retail in e-commerce, the fashion market witnesses an opposite path: digital brands invested in opening new physical stores and flagships.

Why to invest in a physical store in current times?

“I think the physical store delivers an experience of immersion in the brand’s universe, which complements the online experience”, says Ana Luísa Fernandes, from Aluf.

“The creation of a new store represents the beginning of a new phase, in which we seek to expand our audience’s contact with the collective imagination of our universe. It is the beginning of the slow and hopeful walk back to physical spaces. After a period of introspection, new relationships with the environment are born”, says Marcella Franklin, from Haight.

“Although digital commerce has shown exponential growth in virtually all segments during this period, we believe that this resumption of commerce is now an opportune time for brands to explore what they really are, along with their values, their purposes, and their essence, through purchasing experiences, personalized service, a differentiated environment, connecting with your customers in every way. There is nothing more suitable for this dynamic of experimentation and engagement than a physical store”, says Gustavo Belloc, from Deus Ex Machina.

Therefore, the physical space is seen as an experience for the new way of consuming.

Is there a new role for physical stores at this point?

“The physical space allows for other layers of dialogue, bringing Haight closer to those who speak to the brand, while we understand the new dynamic of reopening the world together”, Marcella Franklin, from Haight.

“It is not a store, it is an experience”, says Airon Martin, from Misci.

“More than ever, we are talking about experience stores, which is much more than just another physical store”, Ana Luísa Fernandes, from Aluf.

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“The role of a physical store goes far beyond the sale per square meter. The on-site retail is the heart of the connection between brands and people,” says Camila Salek, columnist for Harper’s Bazaar Brasil.

With the reopening of public spaces and greater circulation of people, we are witnessing a search for reconnection, in which experiences play a fundamental role. Thus, the fashion market directs its efforts to attract customers back to their physical spaces and bring them closer to the brands.

Omnichannel is here to stay. That is, the digital space that many brands conquered during the pandemic will not be lost, but even so, brands must, need, and want to provide unique moments to consumers who are looking for these experiences in their physical stores.

Discussions about the future of the post-pandemic physical store

Traditional retail determines the value of your store by the amount of products sold – “sales per square meter.” So, the new retail explores the potential of opportunities in the integrated physical and digital channels.

Some studies made by brands that integrated their channels point to the “Halo Effect:” increase in online sales in the same region as the physical store, that is, the physical space as a stage and media for the brand influences the performance of digital sales through geotargeting.

“Have you ever stopped to evaluate your store’s result as a medium? Retail futurist Doug Stephens, in his latest book called Resurrecting Retail: The Future of Business in a Post-Pandemic World, made a very interesting provocation by saying that brands pay for their ad impressions on digital channels, but do not use the same logic to measure the impression of a campaign or product displayed on physical stores,” Camila Salek.

Reimagining stores for the next retail standard: redefining the store’s role and revamping operations for the post Covid-19 future.

The pandemic changed consumer behavior and the market needs to understand what the new consumer behaviors are.

Strategic imperatives to prepare for the next normal

In order to survive and thrive in the post-coronavirus world, stores must fundamentally change the way they operate on both sides of the P&L (statement of profits and losses).

Strategic Imperatives:

1 – Radically accelerate omnichannel integration: gain a deep and up-to-date understanding of customer preferences; imagine a new function for the stores.

The pandemic has driven new omnichannel initiatives for large and small retailers. The omnichannel integration is the current bet for the new standards that are being set.

“In our survey of US apparel executives, 76 percent said they plan to improve omnichannel integration in stores”, McKinsey & Company.

To initiate this integration, retailers can consider the following actions:

– Redefine the role of the store. More than ever, stores need to deliver customer experiences; looking to deliver a superior product discovery experience and provide access to exclusive merchandise.

– Offer basic notions of omnichannel service.

– Build an omnichannel team.

– Enable personalization of touch points in the store. “If store associates have access to customer data generated both offline and online (for example, data on loyalty and purchase behavior across channels), they can tailor their customer interactions accordingly. Even customers that start and end their journeys online can then receive personalized attention in stores.”

2- Reimagine the point-of-sale operations to reflect the new reality: redefine the cost structures of the store and prepare your workforce for the next normal.

Redefine the cost structure of the store: simplify operations and rebalance cost allocation in order to support the growing volume of omnichannel activities.

– Change the complexity. The leaders of store operations must collaborate with the merchandising function to redefine the frequency of restocking and the minimum stock levels to reflect post-crisis sales and traffic.

– Quickly digitalize and automate work without added value.

– Improve the omnichannel touch points.

– Introduce contactless self-service capabilities for omnichannel transactions. “We’ve found, for example, that 60 to 70 percent of the typical retailer’s returns process can be digitized”, McKinsey & Company.

Prepare the workforce for the next “normal”

A McKinsey & Company survey with specialized apparel and retail executives showed results: 75% indicated that their companies laid off or fired store employees since the beginning of the crisis. During the recovery period, retailers must shape their future workforce to support the store’s new role and improve flexibility of their employees, preparing for potential recurrent and virus-related stoppages.

– Retain pre Covid-19 talents.

– Improve training and integration.

– When rebuilding the store teams, rethink the composition of the workforce.

– Improve employee flexibility.

3- Optimize the store network through omnichannel performance.

“In our survey, 53 percent of respondents said they expect to close underperforming stores in the aftermath of COVID-19”, McKinsey & Company.

Retailers must incorporate their future perspectives (or projections) into their reopening plans – make decisions through an omnichannel perspective of long-term store performance; to better understand the true economic value of a sales point, a retailer should modify the store’s P&L to include its e-commerce arm.

“A forward-looking omnichannel view of each store’s performance should incorporate postcrisis traffic projections and the retailer’s envisioned role for the store”, McKinsey & Company.

#LojasFísicas #Pandemia #Covid-19 #LojasFísicasPósPandemia #Varejo #VarejoFísico #McKinsey&Company #McKinsey #Harper’sBazaarBrasil #CamilaSalek #Omnichannel

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THE AGE OF EXPERIENCE: what consumers look for in physical stores

“With the acceleration of e-commerce, what will be the future of physical stores?” Think with Google.

Physical stores and the (re)connection of people and spaces

“The role of a physical store goes far beyond the sale per square meter. The on-site retail is the heart of the connection between brands and people,” says Camila Salek, columnist for Harper’s Bazaar Brasil.