The State of Retail

When I wrote a piece on store closures before heading off to the National Retail Federation, I expected maybe a couple of comments (it's now at 200) on a topic that is happening that we're almost desensitized to now, the disruption of retail.

Much to my surprise, I kept getting quality comments on that post - to the degree that the "comments" became superior to the thought-leadership I had hastily created. Thus, what I had to do became obvious, create a follow-up piece with the crowd-curated wisdom. This article contains some of those comments.

I don't work in retail, I barely even shop. However, the comments were from a highly engaged public that included some retail professionals, content writers in retail and retail sales folk with years experience. Among these, some of the leaders in retail innovation. The beauty of wisdom, is it's not an opinion, it's a consensus.

While many of us have heard of all these trends before, it's nice to hear real everyday people saying them in lucid summaries from such varied sources. So, that being said, I hope you can appreciate the human element of this piece.

|The State of Retail | by retail professionals on LinkedIn |

1. Retail Margins are Thin

Retail has been under accumulating pressure for years. The rents for the stores are too high, the profit margins too low and we're changing from an industrial society to a knowledge society, from a material economy to an experience economy. People are increasingly l ess interested in buying "stuff" that they don't need and purchase power is lacking, too. Retail has been at the forefront of noticing changes first. It's not just the presumed 'death' of a way to shop, because it is replaced by another. -- Thinking that everything is simply shifting to online is naïve. the shift goes way deeper

~ Nicolette Kuba | Empathic entrepreneur, natural innovator & holistic management coach.

2. Amazon is Changing the How of Retail

I find it interesting that with all of this talk about b/m store closings Amazon is OPENING stores. It's not what they do, it's how they do it. Talk to any company and the first account out of their mouth about where they want to do biz is with Amazon..

~ Mark C. Annese | Energetic and passionate sales executive.

3. How We Shop is now Show-rooming

I think there will always be a place for brick and mortar stores in some capacity, but only for the chains that can adapt. Best Buy is a great example of a chain that could have continued to dominate if it had kept up with (or even helped shape) the future of retail, but they kept going down their path thinking it was just a fad.

Part II:

In a way, they were right. Many people have a need to experience something before buying...see how that rug feels...sit in that chair...compare how big that crib REALLY is to the space they have...etc. But that's basically just a showroom, not a salesroom. And for most of our needs that's good enough.

~ William Parker |

3. Stores Don't Die, they Just Change

I'm a big believer in the power of the store and the physical shopping experience. There does need to be adjustment though and those who had the foresight to look towards the future and develop their offering are in a better position today than those that didn't. I think some consolidation is only natural as companies adopt new strategies, but I don't think you can use that to say the physical shopping experience is over.

~ Cate Trotter | Retail Innovation Consultant and Head of Trends at Insider Trends

4. Create Optimal Human Experience

Retail as we know it is definitely changing. The traditional store format — i.e. people come in, browse the shelves, and make a purchase decision in-store — is on its way out. All these store closures are a testament to that....What will these physical locations offer? To name a few: interesting experiences, a sense of community, human interaction, in-store pickup.

~ Francesca Nicasio | Writes about retail trends and tips to help stores increase sales and serve customers better (Vend).

5. The Decline in Customer Service

Retail is being disrupted because people are tired to work there with minimum wages and part-time contracts, so there you have the sale associate who isn't doing any quality job because he/she isn't motivated and paid enough, the shopping experience changes. On top of that product prices aren't competitive like they used to be; so why are we here wondering retail chain store are closing?

~ Carlo Ienna

6. Consumer Behavior is Evolving Faster

Well, it's not the store closures that are threatening retail. It's the challenges of adapting to new technologies and evolving consumer behavior. Those that innovate and find new ways to uniquely add value, engage customers and meet their needs will still be around. Best Buy, for example, took "showrooming" - what many perceived to be a threat - and turned it into a value-add service that you can't get at an etailer.

~ Michael Stephens | Accomplished executive and serial entrepreneur 

7. Rise of Thrift and Re-Sale Retail

Has anyone factored in the rise of thrift stores and foot traffic into them especially since 2008? The choices used to be St. Vincent de Paul, Salvation Army, Goodwill, and the odd Christian resale and the only reason you knew about them was either word of mouth or you happened to be in an area where they existed....

~ carolyn johnson

8. High and Main Street Under Pressure

In the UK and also being the proud owner of retail business and online business i see high street closures increasing due to high rents, high business rates in some areas, as well as taxation. Amazon and other online companies based off shore have such an amazing benefit of not paying tax, that we have to pay. My small online and retail business has paid more tax in 2 years than Amazon in 10 years. really not fair and why high streets are failing.

~ Phil Baker-Kilburn | Responsible for Group Accounts - retention and development strategies plus new business sales.

9. SMB Retailers can now Differentiate

...I think retail will continue to go more and more towards e-commerce each year, but that also leaves open the possibility for the savvy entrepreneur to open niche or specialty brick and mortar locations. I could even see a small relative return of the "mom and pop" type stores that were pushed aside in favor of malls and big-box retailers decades ago. There will always be a need for physical retail locations; it's just a matter of understanding the dynamics and scale of the operation, as there will always be the need for instant gratification over waiting for a delivery.

~ Christopher Idell

10. Retail Jobs in Jeopardy | Rise of Brick and Click

One of my proudest career moments was helping open what was at the time, the then 3rd biggest book store in the UK with Borders. Hired, inducted, pay-rolled and trained 100+ staff - One of my saddest career moments , watching them all loose their jobs as the footfall fell well short of over optimistic predictions, none of which factored in web sales. You could see it coming, customers would browse in the store, then go home and order online cheaper. 

~ Russ Blackney

11. Drop in Disposable Income Hurting Consumption & Changing How we Shop

The fact of the matter is, people aren't making the type of money they used to. If someone is working 40 hours a week and barely making enough to keep a roof over their head, they're certainly not going to have the spare cash to go out and buy anything that isn't absolutely essential.

~ Carolyn Wilson

12. We must Reinvent the Shopping Experience: Interaction & Customization

The retailers who are downsizing or closing stores have not made efforts to evolve to meet consumer needs. Retailers have to reimagine the shopping experience, its not just about selling stuff and smart retailers will blaze a new path that is heavy in brand and interaction while allowing people to get products as they prefer.

~ Lisa Mercurio | Strategic retail leader with long term solutions and short term action to achieve results.

13. Omnichannel Consumption & the Rise of Digital Influence

Strategic Stores closing don't necessarily mean business are closing, some are undergoing #DigitalTransformation and forming #BusinessNetworks to serve communities of customers(# B2B2C)..#OmniCommerce ... Domain Names the new #Brand names.

Part II

In most cases distribution channels are changing and also to cater to next generation of digital savvy customers, fulfillment can be done in better ways leveraging technologies these days at much lower #CAPEX 

~ KawalPrit (KP) Arora | Social Entrepreneur & retail strategist.

14. The Shift is Happening Everywhere - not just Retail.

Selling into retail (services and product) for two decades and watching the decline with the big box hurts. The insight you provide should be eye-opening for the others out there. Not only in retail but hospitality, mall property management, restaurants, auto dealers and more. Amazon and other companies flourishing make life easy through technology...

~ Jared Jerotz

15. Front End Woes in B&M

It's frustrating, but brick and mortar retailers have trapped themselves in a vicious self-defeating cycle. Before, you could go to a store, find someone in a department who's friendly and knowledgeable about the products in their area. Having plenty of accessible staff to provide great customer service is expensive. Retailers found it prudent to take 5 people in an area and combine their workload into 1 position. Now, this 1 person is running around with their head cut off trying to complete their tasks and assist their guests.

Part II: Customer Services in Crisis

Even if they want to provide superior service to each person that steps through their door, it is simply impossible for customers to receive the kind of service they want when these places are so poorly staffed. Employee retention is abysmal due to the stress, and product knowledge walks out the door each time someone is let go or quits.

Part III: Why We Brick and Click

So what is a smart consumer to do? Go online and order your merchandise from them. You can compare prices, read reviews of product, have it sent directly to your home, all without having to hassle with the busy, frustrated, and unknowledgeable salesperson being pulled in 10 directions at the store. It's a shame, but B&M retailers have no one to blame but themselves.

~ Dennis Herrera

16. Is Robotic Retail Dangerous?

The move towards robotics will eventually result in a catch 22. People will lose their jobs and eventually there won't be enough people able to spend and contribute to our economy. Further hurting our fragile economy.

~ Martha Moreno

17. SMB Retailers are making a Comeback

You can't blame store closures on consumers when it was management who failed to address customer needs or decided to abscond with the funds and decimate the employees and communities. As readers, we have lost the coffee shops with books that we would buy at a 20 or 30 percent discount, but still have independents that are making a comeback. In other words, change is being forced on many of us as a convenience to online merchandisers when our local communities could use an infusion of small businesses that aren't looking to go global.

~ Robin L. Anderson, M.A. A versatile writer and editor; an Innovative Communications Specialist.

18. Retail is moving to the Cloud; Like All Businesses

Closures are an effect, not a cause. Retail has been overbuilt for a long, long time--how many times have you been out driving around and thought, "How do all these places stay in business? Are people really buying all that much stuff?" Turns out they aren't. Really, though, it's the consumer-driven economy coming home to roost, and it's not going to be pretty.

~ Scott Lucado

19. Retail Now in an Age of Logistics Fulfillment

...As computers and merchandise tracking became more sophisticated the need for large retail spaces with large stock rooms became a thing of the past. As merchandise was sold, new orders were being made to replenish the sold merchandise and within a few days it was at the store. Merchandise was kept at large central warehouses which paid significantly less in rent than retail space did and retailers downsized because they no longer required large stockrooms to hold extra merchandise. The warehouses became the stock rooms...

~ Sidney Almeida

20. When Smaller is Better

There will be a shift back towards smaller, in town operations, some self-run, more boutique, specialist. There is already a tangible change in consumer purchasing, as the FT article ‘Shift to organics gives Johnson & Johnson the babycare blues’ ( July 28, 2016: David Crow) captures perfectly. These smaller but nimbler operations will trade with greater ease between physical store and online presence. 

~ John McKiernan

21. Sales Associates Lag Behind the Consumer on Product Knowledge

The well-informed sales associate MAY have a role to play in the decline in brick-and-mortar retail. However, the retailers and their employees must pursue product knowledge and improved communication skills (among other needs) in order to remain relevant. With increasing frequency, I find myself much more well informed than sales associates at the retail level when I am considering purchases, specifically significant ones.

~ Brian Mann MEng, ME, PE

22. Customer Centric Omnichannel

Disruption?... I guess so. Changing consumer purchasing preferences?... Absolutely! This boils down to one truism... 'Businesses MUST serve the customer in the manner they want to be served if they want to survive'...

~ Mark Oakes, PSP

23. Is AI disrupting Retail?

It is amazing to see the end of an era regarding brick-and-mortar retail big box retailers. So many of these stores are going to be nonexistent in the next five years. A lot of jobs typically done by humans will disappear because of the introduction of artificial intelligence and automation.

~ Matthew Donohue | Accomplished and dedicated retail associate

24. Is Technology creating a more Isolated World?

I prefer going to a retail store. I think online shopping has its perks but I value face to face interaction. Sad to see a world where we omit human interaction for technological conveniences. There is so much beauty in getting to know those around us and not having your life dictated by technology.

~ Andrew Maze

25. Where will the retail jobs go?

I'm more worried about the effect on jobs rather than the real estate. The industry is cyclical and with vacancy you get a chance to right the market and balance it.Cut the fat and repurpose the real estate for a higher and better use.

~ Jake Randolph | Retail Real-Estate Specialist

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What are your feelings and insights about the future of retail and the future of the brick-and-mortar store, retail employees and the way we shop?