{"id":1511581,"date":"2022-10-05T10:13:44","date_gmt":"2022-10-05T14:13:44","guid":{"rendered":"https:\/\/www.practicalecommerce.com\/?p=1511581"},"modified":"2023-11-28T09:48:04","modified_gmt":"2023-11-28T14:48:04","slug":"retail-apocalypse-reversal","status":"publish","type":"post","link":"https:\/\/www.practicalecommerce.com\/retail-apocalypse-reversal","title":{"rendered":"Retail Apocalypse Reversal?"},"content":{"rendered":"

Lessons learned from digital commerce and the software-as-a-service business model could be just the thing to transform the long-running retail apocalypse into a renaissance.<\/p>\n

As apocalypses go, the retail version is a slow burn, since at least 2010. During this time, various prognosticators have lamented again and again the end of brick-and-mortar retail. A combination of ecommerce, supply chain challenges, labor problems, and the pandemic has contributed to retail’s imminent destruction \u2014 so they say.<\/p>\n

However, physical retail has not ended. In fact, those sales grew in August 2022 in the United States, according to the U.S. Census Bureau<\/a>.<\/p>\n

Could it be that store closures, ecommerce growth, and various other factors are indications of a forthcoming retail renaissance, a retooling and repositioning thanks to digital commerce?<\/p>\n

Shopify for Brick-and-mortar<\/h3>\n

Consider the technology that has helped drive ecommerce growth \u2014 specifically SaaS ecommerce platforms such as Shopify.<\/p>\n

Before those platforms were available and feasible, serious ecommerce companies faced a myriad of technical challenges, such as maintaining web servers, collecting payments, protecting data, integrations \u2014 you name it.<\/p>\n

Those early struggles are now history. Digitally native brands worry little about the foundational technology. They focus on product, merchandising, and branding while selling on Amazon’s marketplace or via a Shopify storefront or similar. They worry about the things that differentiate their businesses and let the ecommerce platform manage the operations.<\/p>\n

So why can’t brick-and-mortar retail do this, too?<\/p>\n

A Retail Platform<\/h3>\n

An example of a Shopify-like approach to in-store retailing is Leap Services<\/a>. The company was founded in 2018 to help digital-first brands open physical stores, providing the real estate, fixtures, store manager, and other employees to get up and running.<\/p>\n

The digital-first brand is responsible for those activities that make it unique, such as product, merchandising, and advertising, among other differentiators.<\/p>\n

Leap will not likely be the only or last such venture.<\/p>\n

\"Screenshot

Leap Services’ home page leads with “Grow your brand with immersive retail.”<\/p><\/div>\n

Amazoning Retail Operations<\/h3>\n

Amazon Web Services is a massive infrastructure and SaaS business. In the second quarter of 2022<\/a> alone, AWS generated $19.74 billion in revenue.<\/p>\n

Amazon recognized that it had operational expertise in server management and used it to start a new cloud-computing business.<\/p>\n

Retailers with operational expertise could do something similar. What if Walmart borrowed Leap’s business model and infused everything it knows about location selection, supply chain, and store operations into a service that digital brands could use to spin up brick-and-mortar stores?<\/p>\n

Plenty of successful regional retailers beyond Walmart could offer this service and give digital brands a hand in physical retailing<\/a>.<\/p>\n

Data Would Be Next<\/h3>\n

Moreover, a platform approach could lead to more data-driven decision-making in the brick-and-mortar retail context.<\/p>\n

During an interview on the “Unpacking the Digital Shelf” podcast<\/a>, Leap Co-founder Amish Tolia said that his company was aggregating sales data from several of its client brands and hoped to use that data to provide retail insights.<\/p>\n

For instance, Leap might operate several stores in one area. Tolia described eight such shops clustered within a couple of blocks. Each store represents a different digital-first brand, but Leap runs them all and can see their customer and sales data.<\/p>\n

This sort of data might better inform Leap clients about where to place a store, how to merchandise it, and even what products it should add.
\n<\/p>\n

Retail Renaissance<\/h3>\n

The rise of digital-first retail brands has been fascinating. At a time when many legacy retailers are struggling, these young brands have found success by leveraging technology<\/a> in new and innovative ways.<\/p>\n

Now they may be on the verge of leading a retail renaissance by retaining brick-and-mortar experts, much like working with Shopify.<\/p>\n","protected":false},"excerpt":{"rendered":"

Physical retail stores face challenges amid ecommerce, supply chain issues, and labor shortages. A Shopify-like approach for brick-and-mortar businesses could be the answer. <\/p>\n","protected":false},"author":391,"featured_media":1511583,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":"","_wp_rev_ctl_limit":""},"categories":[58310],"tags":[],"class_list":["post-1511581","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-local",""],"acf":[],"yoast_head":"\nRetail Apocalypse Reversal? - Practical Ecommerce<\/title>\n<meta name=\"description\" content=\"Physical retail stores face challenges amid ecommerce, supply chain issues, and labor shortages. 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