How To Plan For Pre, Peak, and Post-Holiday Shopping

How To Plan For Pre, Peak, and Post-Holiday Shopping

Originally published on September 20th, 2021.

October to December marks the peak shopping season for retail stores. It’s a time when many retailers plan for an increase in shoppers. As the world moves out of the global pandemic, retailers need to be ready for customers with new shopping behaviors.

Pre-Holiday

According to a Google study, 70% won’t consider purchasing something without seeing it online: whether it is an ad, browsing through a website, social media, or email newsletter. This means that retailers need to start ramping up on their online efforts early: whether it is sending weekly newsletters or updating social media on a regular basis, “online storefronts” are more important than ever to shoppers.

Think With Google, 2021

People often flip between discovery (window-shopping) and shopping (looking for products mainly based on functions or features) until they are ready to make a purchasing decision. Of the two, discovery is more emotional and can often override the rational thinking behind shopping. Which is why online “pre-shopping” discovery is so important to the entire shopping process now.

A Statista survey showed that up to 50% of people are planning to do their holiday shopping in-stores. This means that retailers need to be ready to showcase new merchandise and discounts online to shoppers even before they make it to the stores.

Retailers need to gather more customer reviews so that they appear higher than their competitors on Google searches. Read more on how to get more customer reviews here.

Peak-Holiday

In 2020, up to 79% of people left their holiday shopping until one-week before Christmas. This is good news for retailers because they are able to push their efforts to the very last minute. The same study showed that 64% of shoppers planned to shop in-stores. After more than a year of restrictions, people are eager to get out. This is great for physical stores that are able to target shoppers when they’re nearby.

Convenience plays a huge role in purchasing decisions today. “Now near me” searches have grown 100% worldwide. Options for store-managed e-commerce have also increased a lot. Because some shoppers will always leave holiday shopping until the last minute, local stores have a major advantage. After all, everybody has experienced shipping delays given the increase in online shopping. Instead, more local shoppers are searching for ways to buy online and pickup in store (BOPIS) to avoid delays.

The key to successfully offering store pickup for online orders is inventory accuracy. This means using store operations software that offers real-time stock information in-store and online. One way to make sure that your store appears online is to use Google’s free product listings and Local Inventory Ads (LIA). Learn more about how to increase foot traffic to stores with Google here.

For last minute shoppers, retailers can offer store pickup. Not only does this avoid delivery delays, it helps encourage shoppers to purchase extra items when they come to the store for their orders. Make sure that your order pickup area is well-merchandised with suitable impulse products. And consider switching to an order pickup system that will allow staff to checkout customers. There’s nothing worse than losing sales from a in-store shopper just because a customer doesn’t want to line up again to pay.

Post-Holiday

13% of all retail purchases end up being returned. This means that retailers could be juggling huge losses in January. In the US, 1.75 million packages were returned in January 2021, and that does not include returns in store!

Keeping the return process simple and painless is key. It is especially important for retailers to create an easy process as 89% shoppers who have difficult return experiences will not shop at the same store again.

As the holiday frenzy winds down, retailers should cycle back to the pre-holiday selling tactics and tips to gear themselves up for another selling season. Read more about our off-season marketing strategies here.


Want to know more about Post-COVID merchandising?

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How to Build Resilience In Your Retail Business

How to Build Resilience In Your Retail Business

Originally published on August 18th, 2021.

Every so often, retailers are affected by things out of their control such as recession, inflation, seasonal natural disasters and pandemics (just to name a few). One of our customers had a huge setback when a large truck crashed into their storefront because of black ice. Bottom line is, you always have to be ready for surprises. Without the right precautions in place, this could put a huge strain on your businesses and could lead to closure. In an uncertain world, we want to make sure you have the right tools to manage your store so we have put together a few tips below to help you stay resilient through any unforeseeable events.

retail visibility

Inventory

  • Conduct a physical inventory count to verify inventory amounts. Record any losses of inventory that are damaged, or expired, or spoiled. You’ll want to make sure that the inventory you have counted matches stock levels in your POS or inventory management system.
  • Review your inventory to decide what needs to be discounted and promoted immediately to bring in cash flow and to minimize the losses from your most outdated stock.
  • Contact your suppliers and vendors to get an update on order lead times and ensure accurate delivery schedules. You don’t want to sell what you can’t fulfill.

Staff

  • Use new hiring tactics. Write engaging job descriptions, promise of more hours, and offer a rewards-based incentive program so that your staff can stay invested with the success of your store.
  • Review loss prevention and security policies with employees. Don’t forget to review your POS access rights to make sure the staff permissions are still accurate.
  • Staffing alternatives with technology. Labor is hard to come by these days, modern omnichannel systems like TAKU Retail (with features like our self-checkout kiosk, and automatic inventory sync) can reduce the amount of hours needed to run your business.

Retail Store Exterior and Interior 

  • Regularly make sure that the storefront is clean by washing windows and doors, and cleaning high-traffic areas thoroughly.
  • Have the store’s new merchandising plan and products tags ready for staff. Ensure that all of your staff are informed of any new changes and are scheduled to help display stock before you open. 
  • Place promotional signage around the store. 

Retail Operations Management

  • Organize back office tasks: Review your fulfillment processes as cashiers need to have easy access to product or curbside orders at the front of the store to minimize their walking around the store.
  • Review receipt management procedures and train staff to put receipts directly into shopping bags instead of handing them to customers or ask customers if they want an email receipt instead. Remember that privacy regulations require that you get positive customer consent to save their emails for future use so an email marketing tool to capture consent that will allow customers to unsubscribe themselves. 
  • Enable staggered pickup times. Requiring customers to make an appointment to pick up their purchases to avoid huge lineups outside of your store. E-commerce providers such as TAKU eCommerce allow customers to choose a pickup time and date at checkout. Alternatively, you can use apps such as Eventbrite, Calendly or Acuity Scheduling, many of which are free for a single store account.

cloud pos

Security, Technology, and Utilities 

  • Ensure that your utilities are working properly: This includes heating, ventilation, and air-conditioning (HVAC), phone, internet,  electricity, and plumbing etc. If any of your utilities were disconnected while you were closed, it’s a good idea to call the utility companies to make sure they are working before you re-open. 
  • Check all surveillance and security cameras to make sure they are working properly.
  • Ensure alarm systems are working and consider updating alarm codes if needed. 
  • Verify that your retail POS system, credit card terminals, and scanners are ready to process sales. Before opening, ring in a test sale to make sure your POS is good to go.
  • Make sure that your payment terminal (PIN pad) is capable of accepting contactless payments. Know what your contactless limits are and increase them if you are comfortable with the higher risk (contactless “tap” payments are subject to chargebacks).
  • If things are a bit dated, consider updating your security system. You can look at online reviews comparing different systems to get a better idea.
retail incentives

Retail Marketing

  • Run promotions to give shoppers incentives to shop and highlighting relevant seasonal products. Remember to add this information to your online store, Google My Business, and all of your other social media channels. Read more about how to use Google My Business to attract local shoppers in your area here.
  • Let people know that you take orders online – TAKU helps retailers showcase their products 24/7 online and accepts payments easily and quickly (read more here). Fulfill orders in-store and allow customers to schedule a pickup time so that customers can pop in to pick up their items without the stress of long wait times or lineups.
  • Update Google My Business. Update your Google My Business listing and let customers know you are open for curbside pickup or delivery. Remember to adjust your hours of operation on your listing if you decide to shorten your store hours! 
  • Get added to local directories. Add your business to local directory listings (Bing, Yahoo etc.) to make it easier for shoppers to find you online. Support Retail is one of our favorite directories and was created during the COVID-19 pandemic as a free tool to help connect local businesses to shoppers in the area. Being featured on local directories with links to your website improves SEO which also means that you are able to have your website appear ahead of your competitors on search engines such as Google.

In light of the COVID-19 pandemic, we wanted to add a few relevant tips for retailers that have reopened or planning to reopen soon. We understand that it might be a little overwhelming, but completing this list can help your employees and staff feel safer, and create more trust.

The world can be a shaky place right now, and there may be some rough times ahead. You can rest assured by following the tips outlined in this post. When you build resilience in your retail business, you can handle uncertain times with the utmost confidence and certainty.


Want to learn more about how to be seen as the top result on Google (or other search engines)?

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Post-Pandemic Retail Trends

Post-Pandemic Retail Trends

A lot has changed over the last two years. When the pandemic started in 2020, retail was heavily affected. Now that we are in a post-pandemic world, retail has once again changed. Some trends from the pandemic are sticking around, and some are not. In today’s blog we are going to go over several post-pandemic retail trends.

Post-pandemic inflation affects spending

We’ve touched on inflation affecting consumer spending. The early months of the pandemic saw an increase in spending by consumers. However as interest rates and inflation continue to increase, consumers are making mindful decisions to cut back on spending. Although the lipstick effect continues to explain why small luxury items are continuing to sell, discretionary spending is decreasing overall. Consumers are spending less and less on things such as clothing and meal kits.

Brand loyalty is shifting post-pandemic

Brand loyalty in post-pandemic retail
(Source)

Younger consumers are leaving brands they were once loyal to. 39% of consumers (mostly Gen Z and Millennials) have left behind trusted brands to try new ones. At the same time, older shoppers are prioritizing convenience and supporting more local businesses. The bar is higher than ever to earn brand loyalty today but it’s still important to retailers everywhere.

One of the most powerful tools for earning brand loyalty is a loyalty program. These programs actually make 60% of global consumers into brand loyalists. But instead of simply discounts, consumers are increasingly saying that loyalty is about ‘exceptional experiences’ or a ‘sense of trust.’

Store-ception (stores within stores)

Apple store within Target
(Source)

Another trend which is gaining more traction are stores within stores. Now that people are physically shopping in stores after the pandemic, this trend is big! A common example of this is the beauty counter within a pharmacy. Usually these spaces have lighting catered to beauty products and special signage.

Since stores have reopened, this trend is skyrocketing. Brands such as Target now have small Apple stores within their stores at multiple locations. This gives retailers the boost of “subletting” floor space to an aspirational brand with it’s own established customer base. This attracts more foot traffic and gives shoppers a better in-store experience.

Home investments are slowing down post-pandemic

A couple taking a home improvement project
(Source)

Traditionally during a recession, people are more likely to “nest” and spend more time at home to save money. This recession will be different though as shoppers everywhere are tired of isolating at home after several years of lockdowns. The traditional boom in home products happened early on during the pandemic. As as result, shoppers have already invested in their homes and the demand for products and brands related to nesting has been on the decline as consumers return to stores, restaurants and travel.

As shoppers have less disposable income and have already spent money on home improvements – the nesting boom is coming to a halt. Although there are less people willing to spend on home improvement now, the people who are able to spend are going to spend more.

A focus on healthy living

Unsurprisingly, there is increased interest in personal wellness post-pandemic. During the pandemic, products related to outdoor fitness and healthy living were in high demand. Luckily for retailers in health and wellness, this trend is still strong amongst shoppers as the pandemic has reminded everybody about the benefits of healthy living.

The focus on healthy living extends to food and drinks. While normally alcohol consumption increases during a recession, over-indulgence during the pandemic has lead to an overall decrease in alcohol consumption, particularly amongst high-income or young consumers.

The changing role of e-commerce

E-commerce was all the rage during the pandemic. With stores closed everywhere, shoppers had no choice but to shop online. But e-commerce is more than just another sales channel. These days, it is also a key marketing tool.

As shoppers have returned to stores, retailers have downplayed e-commerce sales as they tend to have lower margins. According to Google, 46% of consumers will check online for product availability before purchasing anything in-store. While in-store, these customers are also more likely to make impulse purchases which are often higher in margin.

Another growing trend, is the use of physical stores to showcase products for online purchase. Similar to traditional “showrooms,” guideshops or showroom-like stores cater to consumers who prefer to visit a store before purchasing a product online.

Omnichannel is becoming the standard

Throughout 2022 we’ve been emphasizing that customers want convenience. The flexibility that omnichannel delivers is a powerful way to offer convenience to consumers. Buy online pickup in-store (BOPIS) is being used more and more every day. In post-pandemic retail, stores with true omnichannel operations are the most successful as retailers today need to sell wherever shoppers want to buy. Omnichannel strategies lead to 80% higher rates of store visits. People want to be able to start their purchasing journey online and finish it in-person (or vice versa).

Post-pandemic omnichannel retail
(Source)

Better customer relations via technology

Omnichannel retail platforms allow store owners to save data about their customers. This data can then be used for personalized marketing materials which is more effective at driving sales.

Take a look at this article on some top omnichannel trends to look out for this year. If you are interested in implementing an omnichannel strategy for your store, the best place to start is with an omnichannel retail management system.


Join the omnichannel revolution today. Share your products online, sell online, nurture customer relationships, and drive more visitors in-store with TAKU Retail. Learn more today by clicking below.

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Sell More: 3 Thanksgiving Marketing Ideas For Retailers

Sell More: 3 Thanksgiving Marketing Ideas For Retailers

Fall is fast approaching, and for Canadian retailers this means gearing up for the Thanksgiving long weekend. 

Although Canadian Thanksgiving isn’t as closely associated with shopping (compared to the U.S. holiday), retailers can still create a unique experience for shoppers. 

Keep reading to find out how you can gobble up your fair share of sales this Thanksgiving weekend. 

3 Thanksgiving marketing strategies to Help you sell more

1) Have an attitude of gratitude 

Retail sale

Thanksgiving is the ideal occasion to express your gratitude to shoppers. At the same time, it’s an opportunity to excite them with upcoming Thanksgiving promotions and discounts. 

So thank loyal customers for their business by offering them something in return – in the form of special deals, coupons, or gifts! The following is a list of possible promotions you can run during the weekend: 

A Free Gift with Every Purchase: This promotion type encourages shoppers to make a purchase by offering more value for the same price. In order to create a sense of urgency among customers, retailers should stress that the promotion is limited and exclusive. Meaning that the gift is only offered for a certain period of time and until stock runs out. For example, think about using the words “while supplies last” or “offer valid from October 6-14” on your promotional materials. 

Percentage Discount: This is the most straight-forward and popular promotion type. Seasonal discounts help attract new customers and get rid of slow moving or seasonal stock. 

Buy One, Get One Free: Studies show that offering shoppers something for free is oftentimes more effective than a discount. You can pair high-margin items with slow moving stock. Or, you can increase the amount of items required in the promotion. For example, “Buy 3, Get 1 Free”.  The Body Shop is a retailer that frequently and effectively employs this promotion strategy. 

Offer treats to show your appreciation: You could offer some Thanksgiving treats in-store to your customers. Things like cookies or pumpkin pie slices are a quick and easy option to show your customers you are thankful for their support. Besides a delicious treat, customers will associate the wholesome feeling of gratitude with your store.

Thanksgiving marketing idea: offer thanksgiving cookies
A cute and quirky Thanksgiving cookie, recipe here

Gratitude in your messaging too

The attitude for gratitude shouldn’t end at your sales strategies. Practice gratitude in the messaging throughout your store and to your customers. Making sure your loyal customers understand your gratefulness towards them is an amazing way to make these customers feel special. Use sentences that express thankfulness throughout your store and adverts. Sentences like the following:

  • Thank you for supporting us!/ Thanks for your support! (this one is a great little message to add on your store receipts)
  • We love our (your brand name) family! Thank you for sticking with us!
  • We’re here because of you, thank you!

Once you’ve gotten your promotion strategy in place, make use of digital marketing tools to spread the word about your’s store Thanksgiving promotions. An email marketing campaign and social media are both effective tools that will help generate a buzz and increase foot traffic for your store. 

2) Thanksgiving email marketing

thanksgiving email marketing

Email marketing is a cost-effective way to reach shoppers and drive store sales. According to Hubspot, email generates $38 for every $1 spent

Listed below are best practices to follow for creating an email marketing campaign that converts subscribers to shoppers: 

  • Include an incentive in the subject line. Many business owners overlook the importance of email subject lines. If your email headline does not grab the attention of shoppers (even if it is drafted to perfection), it is unlikely that anyone will open it. By including an incentive in the subject line, you can improve your email open rate. An example of a compelling, incentive-driven subject line is,”35% Off Thanksgiving promotion starts tomorrow”. 
  • Get the timing right. Thanksgiving is a busy time for most shoppers. On top of that, most people are expecting a bombardment of holiday emails (Halloween, Black Friday, American Thanksgiving, Cyber-Monday etc.). That’s why retailers can expect lower than average open and click through rates in November. So it’s important to start your email marketing campaign at least a week prior to the Thanksgiving weekend. Earlier in the week is also proven to be better for email campaigns – with Monday having the highest open rate
  • Personalize the email. You can do so by including the shopper’s first name in the email or subject line. Personalized subject lines are 26% more likely to be opened

3) Give back to your community

thanksgiving marketing through charity

There are many ways to give back to the community this Thanksgiving season. 

One way is to partner up with a local food bank by holding a canned food drive at your physical storefront. Not only does this showcase your store’s community support, it also helps drive foot traffic to your store. Create incentives for shoppers to donate by giving a % discount to every shopper who drops by your retail business with canned food. 

You don’t necessarily have to partner up with a food bank either. Think about teaming up with a local organization that is related to your business. For example: 

  • A pet food store could partner with an animal shelter. 
  • A women’s clothing store could team up with a domestic violence shelter in the area. 
  • Health food stores could work with local homeless shelters.  

Supporting a cause that both you and your shoppers believe in will help you build brand awareness and create new marketing opportunities for your retail business. 

Bonus tip: use Thanksgiving hashtags

Make sure you are using relevant hashtags in all your digital communications! This allows you to reach more people who are looking for Thanksgiving related stuff. The following hashtags are great for the holiday:

#Thanksgiving2022
#Thanksgiving
#Thankful
#ThanksgivingWeekend
#Gratitude
#Thankfulness
#TurkeyDay

Get Ready For Halloween and Black Friday

Remember, Thanksgiving sets the stage for Halloween and Black Friday – two of the biggest shopping days of the year. So it’s a great opportunity to generate a buzz and get shoppers excited for upcoming promotions and deals! 


Did you find this article helpful? We will be posting more holiday marketing tips in the upcoming weeks. Subscribe to our blog to stay updated!  

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Recession-Proofing Your Business: What Sells During A Recession?

Recession-Proofing Your Business: What Sells During A Recession?

Welcome to part 2 of our Recession-Proofing Your Business series. In the first part of this series we went over strategies that retailers can use to handle the recession. Some of these strategies included:

  • How to use software automation to reduce operational costs
  • How to reduce inventory based on changing customer needs
  • How to improve your relationship with customers.

In this blog, we will explain why consumers needs recession-proof products.

What are recession-proof products?

As the name suggests, recession-proof products are items that traditionally sell well during a recession. These are the type of products that people will keep purchasing even when money is tight. Here are 4 ways to tell if a product is recession-proof.

1. Inelastic demand

Elasticity with products or services is a way of explaining how shopper behavior changes when retail prices and household finances change.

When something has elastic demand, it means that any small change in price or the economy will have a big impact on whether customers will change the way they shop. The best examples of this are discretionary products. This is products that are not essential such as clothing or vacations. When the price of these items increase or people are short on money, more people will buy less clothes or take less vacations.

In comparison, products with inelastic demand are things shoppers will keep buying, even when retail prices increase or they are short on money. These products are usually seen as ‘essential‘, without any good substitutes. Products such as prescription drugs, tobacco, salt or mobile phone plans are good examples.

Maselow's hierarchy of needs
Maselow’s hierarchy of needs (Source)

Remember that essential products aren’t always things needed for survival, but they are products that shoppers feel they cannot stop buying. This can include products that comfort people during difficult economic times such as recreational products which satisfy certain emotional needs. Maselow’s hierarchy of needs above is a good way to think about whether a product you sell is inelastic. Products that satisfy needs higher up in the pyramid are more likely to be inelastic and harder to substitute.

2. A easy way to escape

Escapism art
(Source)

Uncertainty during a recession can lead to a lot of stress and anxiety. People will be looking for ways to escape from these tensions. So products that entertain people and help them keep their mind off of things often sell well during a recession. TV streaming, video games, junk food, alcohol, and similar products are examples of this. In the last part of our Recession-Proofing Your Business series, we touched upon the idea of the lipstick effect. This is a great example of how people shop based on the need for escapism and comfort during a recession.

3. Whether a product can be stocked in bulk

Canned food stockpile
(Source)

Whenever there is inflation, people want to stock up on certain products to avoid paying a higher price in the future. As a result, every day essential products with long shelf life will do well in a recession. As long as supply is reliable, essential products such as canned foods, rice, toilet paper, dish soap or instant ramen noodles that can be sold in bulk will continue to sell.

Encouraging shoppers to stock up on shelf stable products is known as stocking the pantry. By selling products in bulk, even at a lower price, retailers make marginal profit on the same sale and limit the space available in a household for shoppers to stock competitive products.

4. Seen as a lower-cost option

If you sell elastic products (non-essential products), it’s always a good idea to offer lower-cost options during a recession. This can be something as simple as smaller sizes or features. Making a smaller sale is still better than losing a sale completely. As long as you are clearly communicating how features vary between differently priced options, you will still be able to offer higher value products for those who can afford it.

You can also use the Apple’s Goldilocks strategy. Placing an expensive option next to a decently-priced option makes the cheaper one seem like better value.

Here are a few examples of how smart retailers are offering wallet-friendly versions of popular products during these inflationary times.

Flonase - the lower cost option
Retailers sell two versions of the Flonase nose spray. One with 72 sprays and one with 144 sprays. Giving consumers a choice between spending more to get more uses, or spending less. (Source)
Sales prices to illustrate anchoring
Uniqlo uses the idea of the Apple’s Goldilocks strategy here. Where you show an item at a higher price right next to a cheaper item. The more expensive product doesn’t look much better than the sale item, so consumers feel as if they are getting a great deal. (Source)

This is the same, even if you sell services or subscriptions. For example, it’s a good idea to offer lower cost subscription plans to avoid cancellations. The best example of this is what Netflix has done recently with their new ad-supported tier. By offering a downgradable plan, more shoppers will keep Netflix versus cancelling their subscription.

Tiered pricing for Netflix
Netflix Canada’s pricing table for the different tiers of membership (Source)

Recession-proof product categories

Now that you understand some of the reasons that drive shoppers to buy during a recession, let’s take a look at some examples of product categories that sell well when times are bad.

Food

This one is obvious since people need food to survive. As we said earlier, food that has a long shelf life will perform better when times are tough. The demand for cheaper food will always increase when shoppers are looking to save money. Of course a recession won’t stop consumers from purchasing food, but you can expect shifts in the type of food they will choose to spend on. If you’re a grocer or you sell food at your store, take the time to consider how to change your product line to meet these new shopper needs.

Self-care products

Collage of various self-care products
(Source)

Products for personal hygiene, self-care, and beauty have historically done well during recessions. This is thanks to the lipstick effect. However some of these products are also necessities, such as: toiler paper, soap, towels, etc. These products are needed by consumers and demand will generally remain stable.

DIY products

DIY lifestyle products also do well during recessions. This includes products that help improve your home (e.g. gardening tools, drills, hammers, nails, lawnmowers, etc.). Other examples include DIY products that give people an affordable creative outlet such as home decor projects or hobbies. It also allows consumers to save money as they will not want to pay a service for things like home maintenance during a recession. After all, DIY is a form of escapism and helps people de-stress.

Pet products

Pet food next to a dog and cat
(Source)

Pet products are strong recession-proof items as people consider their pets as members of their family. So they are not going to be forgotten during a recession. Especially essential products for those special family members. These include: food, litter, treats, and waste removal bags. Pet products will remain inelastic in demand throughout a recession.

Recreational products

A physical film collection in a store
(Source)

Once again people’s need for escapism helps another product category remain recession-proof. Recreational products are a staple during a recession. Lower-cost recreational products perform even better. A deck of cards, board games, cheaper video games, and cost-effective movie streaming are all examples of great recreational products. However these recreational products don’t only have to be in-home options. People will look for way to escape outdoors as well, sports equipment and camping gear are other great recession-proof products.

Off-price products

A discount tag on clothing
(Source)

Off-price retailing is the strategy of buying out-of-season or overstocked branded products and selling them at heavily discounted prices. Off-price shopping increases during recessions so if you have any distributors or suppliers willing to sell you their extra stock at a lower cost, you can also look at offering branded products at prices below MSRP.

Conclusion

Now that we’ve gone over product categories which have historically done well during a recession, you should review your own product mix to determine if you’re selling the right things during these tough times. If you are seeing success with other categories, please feel free to share your thoughts with us below in the comments.


To deal with a recession, investing in tools that optimize your operations is key. TAKU Retail is helps you manage your entire store and ecommerce operations, all under a single login. At the same time, we’re constantly adding new features to help our merchants deal with labor shortages. Click below to learn more about our new self-checkout feature to sell more with less staff.

TAKU Self-checkout kiosk banner
Retail Brick And Mortar Stores Are Here To Stay

Retail Brick And Mortar Stores Are Here To Stay

The rise of e-commerce during the pandemic has led many people to believe that that physical retail stores will soon be a thing of the past. After all, e-commerce feels more convenient as you can shop from the comfort of home. Even Google has seen an increase in the number of people wondering whether brick and mortar stores are dying.

Google search showing "are brick and mortar stores dying" as a popular search
Many people are wondering if physical stores are dying

We’re glad to report that, like many future predictions, the reality is a lot less scary. As post-pandemic studies and recent data has shown, physical retail is still thriving and here to stay.

E-commerce is not the only future

eCommerce artwork
(Source)

While e-commerce grew in popularity during the pandemic, post-pandemic statistics show that people are returning to their old ways. E-commerce sales in 2022 have slowed down. Some of this is likely pent up demand for shoppers who missed shopping in person during the pandemic. But according to research, 59% of shoppers do not trust internet-only brands. At the same time, e-commerce only companies continue to struggle to turn a profit. Many companies who bet on an e-commerce only future are now paying the price.

Brick and mortar retail stores are continuing to grow

Brick and mortar stores on a main street
(Source)

Even after all of the COVID-19 lockdowns, brick & mortar retail stores are thriving. In fact, for every brick and mortar business that shut down, two more businesses opened up. On top of that, sales in physical retail have actually gone up post-pandemic. In-store shopping has seen a 13.7% boost compared to pre-pandemic levels. This growth doesn’t just apply to big names like Walmart, but to small independently owned businesses as well! In fact, over 60% of small businesses are expected to grow their revenue over the next year. This is a trend that can be seen from pre-pandemic statistics as well. Reports show that between 2016 – 2021, the revenue of smaller retailers grew at an average of 51.33%.

And certain consumers actually prefer in-store shopping. The majority of Boomers and Gen X customers say that they shop in-store “all the time”. In fact, younger people such as Gen Z (along with Gen X) are two generations that actually shop more in-person than online. For them, their entire lives are already digital and physical retail appeals to them as experiential shopping

The shopping experience is too important

Woman trying on clothes before purchase at a brick and mortar store
(Source)

Another key reason why brick & mortar stores still appeal to shoppers is because it is still by far a better shopping experience. At the beginning we mentioned how e-commerce provides a certain level of convenience that physical retail can’t. Yet when it comes to immediate consumption, this is something that only physical shopping can offer. There is a level of satisfaction one can feel shopping in-store and taking something home right away. This is why the term retail therapy exists.

But beyond immediate satisfaction, shopping at brick and mortar stores allows customers to get an engaged shopping experience that they simply can’t find online. Being able to physically hold a product and sometimes try it out before purchase is a big factor in deciding to buy something. 59% of consumers say that the ability to try, touch and feel a product is key for in-store shopping over online.

Man using TAKU Self checkout

And when shopping in-store, one of the top priorities for shoppers is convenience, especially at checkout. After all, 97% of consumers have backed out of a purchase due to inconvenience. So if you are in or planning to enter the physical retail industry, be sure to offer easy checkout options. Things like self-checkout enhance the shopping experience for customers greatly.

The future is omnichannel

Omnichannel Management Diagram with TAKU Retail

Throughout this post, it may have felt like we are saying that e-commerce is worse than physical retail. However, the future of the retail today is really a combination of physical and digital shopping. As we mentioned before, consumers want convenience. Omnichannel offers the most convenience to consumers as it allows them to shop from anywhere, 24/7. There’s a reason why 58.6% of retailers are heavily investing in omnichannel fulfillment and 70% of small businesses have adopted digital tools over the past year.

The benefits of omnichannel aren’t just for customers either. Retailers are able to have more control over their business and sell more when they offer omnichannel shopping. After all, retailers who don’t sell on multiple channels end up missing out on ~30% of sales.

Being able to serve your customers in a variety of channels will soon be the standard in retail. For e-commerce, store pickup or fulfillment of online orders from local stores support main streets, is better for the environment and get products to customers faster as delivery costs increase. In order to keep up with the future, your retail business needs to be an omnichannel one.


Now, more than ever, is the best time to invest in omnichannel! Make sure your business is future-proof by implementing software that can support your business over time. Check out TAKU Retail and ensure your business is resilient and able to serve customers the way they expect to shop today.

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