by The model could be a way to meet the needs of consumers who want it all
If retail is your game, winning means having the answer to this question: What does my customer want?
In the event you are still searching for the answer, relax, here it is: Your customer wants it all.
Spoiled by the logistical whiz bang of Amazon, and the massive category offerings of online titans like Wayfair, the customer wants endless-aisle selections, sharp pricing and next- or same-day delivery.
Since the advent of online retailers, many brick-and-mortar home furnishings stores have struggled to compete with online competitors who provide zillions of SKUs, sharp pricing and speedy delivery.
Even so, the numbers indicate that while many shoppers in the market for home furnishings start their shopping treks online, they pull the trigger at a brick-and-mortar store.
While a picture may be worth 1,000 words, shoppers still want to kick the tires, feel the fabric and make sure that sofa they are considering passes the tush test.
Proving once again that necessity is indeed the mother of invention, we now live in the age of hybridization, which I am pretty sure is a word, and if not, it is now.
Last month, as reported here by Home News Now, Wayfair opened a two-story, 150,000-square-foot store in Wilmette, Illinois.
In a press release, Wayfair described the store as a “a one-stop shop for all things home — including furniture, home decor, housewares and home improvement products, for any style space or budget.” Oh, and like Ikea, the Wayfair store also has a restaurant.
With the launch, Wayfair joins the ranks of other online merchants including Warby Parker, Casper and Allbirds, that are hoping to boost sales by adding brick to their click.
And while the numbers clearly confirm that consumers buy furniture and mattresses online, we all know that the tactile experience associated with furniture can’t be downplayed.
Let’s not forget about an interesting and sort of counterintuitive trend found by the International Council of Shopping Centers in a study it did last year.
In that study, they reported that a whopping 97% of Gen Z (people between the ages of 12 to 27) shop at traditional physical stores.
So, on paper, one might assume that retailers like Wayfair, Allbirds and Warby Parker should be skipping all the way to the bank thanks to their brick-and-mortar moves.
Maybe. But then again, maybe not. Looking at Warby Parker and Allbirds, both of which have had stores open for some time, the numbers seem to indicate, at least at this point in time, that the heavy investments made by each have yet to prove the spend was worth it.
According to the analysts that follow each of these retailers, the one thing they have in common is that, so far, they appear to be acquiring fewer new customers from new store openings as they have in years past.
Allbirds, at least for the time being, has put the brakes on new store openings and says it will focus on improving profitability, in part, by growing third-party distribution partners.
Warby Parker, meanwhile, has shifted its in-store strategy from selling eyewear to hiring optometrists, offering eye exams and other vision-related services to grow revenue.
Make no mistake — hybridization is here and here to stay. But it is also clearly a work in progress that still has some speed bumps to overcome.
Today’s hybrid shopper expects outstanding customer service, speedy and seamless checkout, fast pickup service and a host of delivery options. And why not? If hybrid retail offers the best of both worlds, today’s shopper won’t settle for anything less.
