While putting the finishing touches on the last issue of 2017, I’m compelled to look back on what can only be described as a historic year for the retail industry.
We began 2017 with news of record store closings and headlines proclaiming the arrival of the “retail apocalypse.” It seemed that the perfect storm – the economy, overcapacity, e-commerce – was converging to create one of the most challenging years I’ve witnessed in the time I’ve covered this market.
We watched as legacy department store retailers like Macy’s and Lord & Taylor looked to their real estate assets for quick cash to apply to the bottom line, announcing the sale of flagship buildings in New York, Chicago and San Francisco.
This summer, we struggled to wrap our brains around the implications of e-commerce behemoth Amazon.com Inc.’s purchase of grocery purveyor Whole Foods Market for almost $14 billion. Some saw the move as a shot across the bow of Amazon’s chief nemesis Walmart (both retailers have been clamoring for control of the online grocery sector), while others interpreted the purchase as evidence of its newfound commitment to brick-and-mortar.
Either way, we certainly aren’t in Kansas anymore, and the retail market as we’ve known it is evolving at a speed few anticipated. The reality is that the role of physical stores is changing, and it’s incumbent upon retailers to understand and embrace those changes, leading the way as the industry adapts to new consumer needs, shopping behaviors and priorities.
As designers and visual merchandisers, you are in the enviable position of having influence over what many believe is the single most important driver of traffic to physical stores – the customer experience. While some may say that change brings uncertainty, the folks I speak to see opportunity.
Whatever the strategy or methodology, the goal remains the same, to delight the customer in ways that only a face-to-face, physically present and participatory experience can.
Happy holidays from VMSD!