GoKawiilKey Takeaways Online sales continue to rise, but haven’t eliminated the need for brick-and-mortar locations, prompting retailers to double down on the in-store experience.
America’s largest retailers plan to spend at least $20 billion to remodel over 12,000 stores throughout this decade, The New York Times recently reported.
Target, for example, is upgrading locations with new lighting, redesigned displays, expanded grocery sections and renovated backrooms.
Though many shoppers are taking their business online, major retailers are doubling down on brick-and-mortar stores, spending billions of dollars to remodel thousands of locations.
The New York Times reported earlier this week that America’s largest retailers, including Walmart, Target and Dollar General, will spend at least $20 billion to remodel about 12,000 physical stores this decade.
Retail leaders told the Times that the investment is necessary for today’s shoppers. Customers expect clean, intuitive layouts and shelves that are consistently stocked, making it easy to grab what they need without hassle. For those browsing apparel or beauty products, the bar is even higher — they want curated, boutique-style displays, even in stores that also stock everyday items like detergent or gardening tools.
Meeting shopper expectations can result in higher sales. Target told the Times that remodels tend to lift store sales by a few percentage points, usually in the low-to-mid single-digit range.
Besides furthering profits, remodeling stores meets consumers at their point of need; in-person shopping remains popular, even as online alternatives gain traction. Though online shopping has surged for years, it still represents just about 18% of total retail spending, based on U.S. Commerce Department data. The rest of retail spending comes from in-person shopping.
Well-designed stores also carry another advantage: they encourage people to shop online. “The in-store experience is still important for shaping the e-commerce brand,” David Marcotte, an analyst at Kantar Retail IQ, a research firm, told the Times. “Remodels are almost always the best way to go.”
Remodeling success in action
... continue reading