Hybrid Retail in the Post-Pandemic World
When the term COVID-19 first entered our collective lexicon, none could have predicted the transformative impact it would have on the way we live our lives, do our jobs, engage in leisure pursuits, or purchase products.
While online shopping had already been winning the war against physical retail, the onslaught of the SARS-COV-2 virus quickly added reinforcements to its domination. As brick-and-mortar stores were forced to shut their doors to help stall the spread of the disease, online shopping saw incredible boosts in sales.
Now stores have reopened, but we are still seeing relatively low volumes of footfall as customer confidence in in-person shopping is understandably taking time to return to pre-pandemic levels. This is giving rise to many retailers turning to a hybrid model of business, leveraging the advantages of online shopping combined with those of a physical store.
Hybrid Retail
A perfect example of this are the innovative Amazon Go stores, which have recently launched across the Atlantic in London, UK under the moniker, Amazon Fresh.
These stores use digital technology such as IoT sensors to detect when a customer has entered the school with the Amazon app installed on their mobile device, and automatically adds items to their virtual shopping basket as they remove the physical items from the shelves. When the customer is finished, they simply walk out of the store and the cost of the shop is charged to their Amazon account.
The advantages of this kind of shopping are clear. Not only is the Amazon Go/Fresh experience quicker and more convenient thanks to its lack of queues and a checkout process, but it also reduces the need to be physically near to as many other people – perfect for a world where many people are still not confident enough to forgo social distancing entirely.
Clothing brand Burberry has also embraced this kind of omnichannel experience by creating a virtual version of its flagship Tokyo store. Using VR technology and just like its real Ginza store, customers can browse a range of handbags on the ground floor, moving up to womenswear and its iconic outerwear on the first floor. On the second-floor shoppers can browse a selection of menswear, including items from its latest spring/summer range.
Touchpoints throughout the virtual experience display one of five short styling tip films created in collaboration with renowned Japanese actress, Elaiza Ikeda.
An Omnichannel Future
The above two examples are fantastic case studies of what can be achieved with digital technology to create a hybrid shopping experience which offers all the service customers desire whilst remaining sensitive to the fact not everyone is quite ready to return to normal just yet.
In fact, Amazon is planning to make its Amazon Go/Fresh technology available to other retailers. Technology provision is already the main driver of Amazon’s profits through AWS, and it will be interesting to see if it can recreate this success in the physical retail space.
Whatever the case, hybrid retail is no longer going to be an optional extra for retailers looking to succeed in the post-pandemic world. Customers have gotten even more used to the convenience and security of online retail and those brands still committed to the brick-and-mortar shopping experience need to adapt to these shifting habits.
"The official retail sales figures for October and November were positive and I am sure that many retailers were looking forward to December with a high degree of optimism," said CEO of independent retail association, Bira, Andrew Goodacre. "Then Omicron was announced, and it completely burst that bubble of Christmas cheer. The result of the last 20 months is the rise of the hybrid retailer – a shop with good internet presence. We have also seen an increase in local shopping. Even if shops are not closed, the general message to the public is to be cautious and that will lead to more online shopping."
Final Thoughts
COVID-19 is going to be with us for the foreseeable future – perhaps even forever – and we all have to get used to living in a transformed world. Even if things return to complete normality, there will continue to be a transition period where customers will have varying degrees of confidence in shopping at physical stores.
By embracing the hybrid model of retail, brands in this space can make sure they are offering customers as many ways as possible to engage with their products and will stand the greatest chance of a prosperous 2022 and beyond.
The rise of hybrid retail is set to be part of the conversation at Future Stores Seattle 2022, taking place in July at The Sheraton, Seattle.
Download the agenda today for more information and insights.