The changing face of retail: The store of the future
Retailer and retail floor space implications in a multichannel environment
The retail industry is fast reaching a tipping point. The sweeping changes associated with the rise of the shopping centre have been eclipsed. Newer forces undermining the traditional retail model include the increasing cost of operating stores, changes in consumer behaviours and growth of online purchasing.
A radical rethink of the purpose of the physical store and store portfolio is necessary, as incremental adjustments to the store format will no longer be sufficient to survive. The implications for retailers – and all those with an interest in retail floor space – are potentially quite threatening.
From its scan of the changing retail environment and rise of the ‘connected consumer’, this paper by Deloitte’s Retail team in the UK goes on to explore the evolving role of the store, the resetting of store portfolios and issues associated with operationalizing the new store ‘role’ as the brand and product showroom rather than driver of in-store sales.