Brick-and-mortar retail in the digital transformation

Communicating Change

Ever since the first e-commerce projects began their triumphant advance in the 1990s, the shopping behaviour of broad sections of the customer base has changed fundamentally. Today, the retail customer base consists largely of digital natives who value the in-store shopping experience without having to forego the familiar benefits of the online world. Modern customers take it for granted that they can check stock availability, compare prices with other retailers’ offers or access further product information. This is balanced by a need for ‘genuine’ passion for emotionally charged products.

The mind says: Digital convenience 

Modern retail concepts such as click-and-collect, electronic shelf labelling (‘ESL’), RFID and beacon technologies can usually be integrated into existing systems and linked to powerful analytics tools. This makes inventory management processes more efficient and improves the in-store experience and customer loyalty. So much for the business perspective among the industry’s major players. 

The gut says: Genuine passion 

At the same time, a very different shift is taking place in city centres: a return to the passion of the handmade. Whether it’s a coffee roastery, a barbershop or a specialist bike shop – customers are increasingly seeking out specialist retailers who are passionate about what they do and win them over with their enthusiasm and expertise. Even a major book retail chain has recently started adding handwritten recommendations from its staff to the books on display. The clear message: we know our range. We have an opinion. For us, books aren’t just products; literature is our passion. 

The heart lies between these two poles 

The promising path for the future is therefore likely to lie in striking a balance between digital convenience and personal expertise. For standard and mass-market products, the advantages of the online world are decisive, regardless of whether the customer is in the shop or ordering via a mobile device from the comfort of their sofa at home. As soon as emotion and appreciation play a greater role, however, local specialist retailers have a clear advantage. Bringing these two worlds together and communicating this authentically will be one of the key challenges for the retail sector in the coming years.

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Service: Online communication