We’re at the beginning of the retail revolution.
The retail world is changing faster than ever. The intersecting effects of the pandemic, the climate crisis, inflation and technological advancements means we’re seeing developments across the sector. Thanks to frog’s partnerships with leading retailers and consumer brands, we’ve got a front row seat.
In a new report, we hone our focus to an area undergoing fascinating shifts: brick-and-mortar retail. Reimagining physical retail, we focus on the broad set of new customer needs: from seeking unique discovery experiences and on-demand convenience, to the more fundamental need for connection.
Download the new frog report: The Future of Retail: What’s in Store for Brick-and-Mortar?
Via six transformative archetypes, we explore new ways to connect with customers and evolve beyond transactions:
Make space for the untapped potential of brick-and-mortar.
Thanks to the rise of ecommerce, the humble store (with its origins stretching back to antiquity) saw some of its most tumultuous years. The proclamation, “the store is dead!” grew louder. However, signs point not towards death but towards an opportunity for metamorphosis.
While ecommerce’s share of retail is expected to continue to grow in the coming years, it currently represents less than 15% of the entire U.S. retail market. The metaverse and other emerging channels are hot topics, yet linger at a fraction of a percentage when it comes to market share. This means stores—as unglamorous as they have become for many brands—are still where the battle for customers’ money is won (or lost). Physical retail provides a uniquely tactile opportunity for brands to differentiate and connect with customers. Now’s the time to create in-person synergy and invest in the store of the future.
Brick-and-mortar in numbers
New measures of success
Store experience will be assessed by the customer lifetime value created across channels, visits and multiple retail revenue streams.
|Transactions. Store as sales and fulfillment channel.||Relationships. Store as stage for brand experiences and services.|
|One-Way. Store as a site for brands to control the conversation with individuals.||Multi-Directional. Store as a place where brands invite participation and cocreation by communities.|
|Closed Off. Store as a single, controlled branded experience with strict rules of engagement.||Open and Collaborative. Store as an open platform, enabling collaboration amongst unique brands, products and services.|
|Fixed. Store as a permanent location, pre-planned with seasonal program.||Dynamic. Store as an ever-evolving place to experiment as well as measure, learn and respond to trends.|
The decline of the store as solely for shopping
Throughout history, shopping has been synonymous with physical stores, but that link has been disrupted. We’ve seen a decade-long trend of retailers mirroring Amazon tactics: optimizing for efficiency, reducing physical footprints, slimming staff and cutting brand budgets. The ongoing effects of the COVID-19 pandemic and the cost-of-living crisis have contributed to the high numbers of stores closing globally.
The rise of the store as experience
To win in this altered landscape, retailers should avoid obsessing over the transactional, efficiency-driven game. Instead, they should master the experience economy, for which stores are the prime stage. Retailers need to unlearn what they know about the optimized store and adapt to discover and deliver new jobs-to-be-done better than any of their competitors.
Shopping around for retail innovation? Download The Future of Retail: What’s in Store for Brick-and-Mortar?