Among all industries facing disruption in the ongoing 4^th Industrial Revolution, it is retail that is getting hit one of the hardest. Malls across the US are experiencing en number of retail chains, with clerks but few customers. Perhaps their numbers were high to begin with, and this downsizing is simply a Darwinian correction. To put it into context, JC Penney is closing up to 140 stores this year, while Sears and K-Mart are going to shut down 42 and 108 stores respectively this year. The trend is similar for Macy’s, HH Gregg, Abercrombie & Fitch, The Limited and Toys R Us. Most of these jobs are getting lost to online shopping platforms such as Amazon, but the reverse creation of opportunities is not clear. Business intelligence provided by the Bureau of Labor Statistics though provides a different story, stating that retail jobs on average will grow by 2 percent each year till 2026. As a response, physical stores may offer online purchasing option in additional to the conventional in-store one. Loyalty programmes may be started to specifically cater to in-store purchases. Like Fleet Feet Sports, chains could experiment by making stores more interesting to visit by focusing on the design and aesthetics. Customizes services may be provided to individual buyer personas. A community may be developed with common interests, so the store may be a place for all to meet. Like Ralph Lauren, the clothing company’s reasons for opening up a store in Chicago, retailers must realize that physical outlets allow the consumer to touch and feel. So, it may be used as a showroom. Stores may also act as depots where the customers need to walk in to collect their orders made online as Amazon is doing with Lockers. Source: http://www.marketingjournal.org/will-the-4th-industrial-revolution-kill-store-based-retailing-philip-kotler/

Uploaded Date:28 November 2017