“The PwC survey shows that if brick and mortar retailers react to the current situtation on the market and act in time, they will still have a chance to continue in business in future.”
Dominik Brokelmann, CEO Brodos AG and author of "Der vernetzte Laden" ("The connected Store")

The PwC study on the topic “Store 4.0. The future of brick and mortar retail” reveals that 41 percent of customers value competent advice. In view of the increasing competition from the internet, retailers should above all take advantage of the opportunities offered by digitalisation.

CONSUMERS USE ALL SHOPPING CHANNELS

According to the study, retail stores continue to be the most important point of contact to consumers: 75 percent of Germans go shopping in a store at least once a month, but at the same time, omni channel shopping is becoming ever more important for digital natives. 85 percent make at least one purchase a month online, 15 percent even on a daily basis. These consumers 4.0 use all channels and no longer make any difference between online and offline. 

Competent local advice: A huge asset for brick and mortar retailers.

RETAIL MUST TAKE ADVANTAGE OF DIGITALISATION

Customers expect local retailers to offer them added value in the form of individual recommendations, personlised solutions and surroundings boasting the integration of technical innovations. Gerd Bovensiepen, PwC partner and head of Retail and Consumer Goods: “Nowadays, customers enter the shop after having done a lot of background research. 64 percent research online before making a purchase.

As a result, the role of the salesperson is becoming more and more important. The salesperson is the one who takes on the role of the expert, guiding the customer through the diversity of the various offers, giving individual recommendations - and thereby providing added value for the customer, the likes of which is not available when browsing in online shops and internet forums.” For 41 percent of those surveyed, competent sales staff are the decisive factor when it comes to improving the shopping experience in brick and mortar retail. For 30 percent this knowledge is also a central argument in favour of shopping locally.

MANY APPROACHES FOR BRICK AND MORTAR RETAIL THANKS TO DIGITALISATION

The study shows that digitalisation offers a number of approaches, for brick and mortar retail in particular, for addressing customers individually, boosting customer loyalty and creating a better shopping experience. Sales staff can - equipped with a smartphone or tablet - react immediately to the customer’s preferences and requests with offers tailored to the individual customer, showing on the monitor models available for delivery, which the customer can then order online and arrange to have delivered either to the store or to their home address. “Brick and mortar retail is certainly not on the way out. However, retailers have to properly master the digital keyboard and implement omni-channel strategies in order to remain relevant for consumers” states Gerd Bovensiepen."

Local stores can then evolve into a digitally connected shopping experience offering individual and high quality advice.” Only when traditional retailers combine the best of the online and offline worlds can brick and mortar retail remain at an advantage.

The kiosk is already being used successfully in local stores.

CONNECTED STORE THE SOLUTION FOR BRICK AND MORTAR RETAIL

This is the very idea behind our concept of the connected store. With our kiosk technology, brick and mortar retail stores are turning into walk-in online shops. The entire online product range with over 200,000 products is visible for sales staff and end customers in a very small space. Prices and availability are updated centrally from the cloud on a daily basis. Here, the local retailer can offer a product range comparable to that offered by purely online suppliers. Even merchandise which is not available in store can be sold, at a price which can compete with those offered on the internet.  Retailers can also provide customers advice on products in store on the kiosk monitor, being on hand to offer personal advice if any questions arise. Retailers are enthusiastic about our new technology and the platform is continuing to grow.

In addition, our physical service cards offer local retailers an extra benefit, as with them they can make the value of services such as transferring data and repairing mobile phones visible and transparent. They symbolise services which a retailer can offer directly in store.