With ecommerce forecasted to capture 41% of global retail sales by 2027 1, it is a wonder why retailers would open or invest in new physical stores. However, there are retailers out there who are opening stores around exciting new concepts to support modern shoppers and provide competitive differentiation. So, is ecommerce delivering a renaissance for the traditional physical store?

Today, ecommerce and physical stores interconnect to provide modern shoppers with a rich, seamless shopping journey wherever that journey takes them. As a result, the traditional store has evolved into a dynamic hub where digital and physical experiences converge. European consumers expect retail experiences that offer convenience, personalisation, and immediacy. To meet these expectations, stores have become an integral component of omnichannel strategies, blending online and offline shopping seamlessly.

Empowered associates

One of the critical elements driving the success of the modern store is the role of empowered associates. The traditional function of store employees has expanded beyond merely assisting with purchases. Today, they act as brand ambassadors, product experts, and service specialists who manage complex omnichannel operations. To succeed in this multifaceted role, store associates need access to the right technology, tools, and data. Empowered associates can offer personalised interactions by leveraging unified platforms that integrate customer data, inventory management, and sales processes. This not only enhances customer satisfaction but also improves employee retention and job performance, with 55% of retail workers in Europe reporting improved job satisfaction due to technology.2

Strategies for empowering store associates include unifying customer-facing and omnichannel functions, mobilising associate capabilities through mobile tools, and simplifying access to insights.

For instance, mobile solutions enable associates to assist customers anywhere on the store floor, making them more efficient. Streamlining their workloads with task management systems also boosts productivity, enabling them to focus on delivering excellent customer service. The outcomes of empowering associates include increased customer satisfaction, higher productivity, and enhanced brand perception.

Seamless selling

In today’s European retail environment, seamless selling is no longer a luxury but a necessity. Consumers expect a connected and consistent shopping experience across channels—whether browsing in-store, buying online, or picking up orders at a physical location. Seamless selling integrates these channels, enabling customers to move fluidly between online and offline experiences. This results in improved sales and customer loyalty, with 64% of European consumers more likely to shop with retailers that offer seamless omnichannel experiences.3

Techniques for implementing seamless selling include equipping store associates with mobile point-of-sale (POS) devices that allow them to complete sales transactions anywhere on the store floor, reducing customer wait times and enhancing their experience. Additionally, integrating endless aisle capabilities ensures customers can purchase products even if they are not physically available in-store. Streamlining the omnichannel checkout process and offering flexible payment options are also essential to reducing friction at the point of sale. Retailers who implement seamless selling strategies enjoy increased sales, customer loyalty, and reduced operational costs.

The outcomes of empowering associates include increased customer satisfaction, higher productivity and enhanced brand perception.

Personal retailing

Personalised in-store experiences are becoming increasingly important as the retail landscape grows more digital. Physical stores offer something that online shopping cannot—human interaction and personalised service. Personal retailing enables retailers to build lasting relationships with customers by offering tailored experiences that cater to their individual preferences.

Techniques for personalising retail experiences include using omnichannel customer profiles to inform interactions and turning store associates into product advisors. With access to comprehensive customer data, store associates can engage more meaningfully with customers by offering personalised recommendations. Advanced engagement tools, such as appointment scheduling and digital lookbooks, allow retailers to extend the personalised experience beyond the physical store, fostering deeper customer relationships. Effective personal retailing enhances customer loyalty, improves sales conversions, and differentiates retailers in a competitive market.

Store fulfilment

Optimised store fulfilment is another critical component of the modern retail experience. Consumers expect fast and reliable fulfilment options, whether through in-store pickup, curbside delivery, or shipping. A store that consistently meets fulfilment promises enhances customer satisfaction and loyalty. In Europe, where 60% of consumers use click-and-collect services, optimising fulfilment processes is vital.4

Best practices for optimised store fulfilment include training and equipping associates for fulfilment tasks, utilising RFID technology for inventory accuracy, and scaling fulfilment capacity to meet demand during peak periods. Additionally, offering seamless and hassle-free pickup experiences can serve as a competitive differentiator for retailers. The benefits of optimised fulfilment include increased customer satisfaction, higher store productivity, and enhanced competitive positioning.

Performance insights

Data-driven decision-making is essential for continuous improvement in the modern retail environment. Performance insights allow retailers to refi ne operations, enhance customer experiences, and drive strategic initiatives. By analysing sales data, operational metrics, and competitive benchmarks, retailers can identify areas for improvement and implement changes that positively impact their bottom line.

Using performance insights effectively involves empowering store teams with real-time data and simplifying data visualisation.Comparative insights also enable retailers to benchmark their performance against industry peers and adjust strategies accordingly. The outcomes of leveraging performance insights include enhanced employee engagement, increased sales, and improved customer experiences.

Conclusion

The future of the modern store in Europe hinges on its ability to adapt to change, embrace technology, and prioritise the customer experience at every touchpoint. By empowering associates, implementing seamless selling techniques, personalising retail experiences, optimising fulfilment processes, and leveraging performance insights, retailers can ensure their stores remain competitive and relevant. In doing so, modern stores will continue to be essential hubs of engagement, loyalty, and brand identity for European brands and their customers.

1. Boston Consulting Group - “Winning Formulas for E-Commerce Growth” (2023)
2. European Retail Digest - “The Role of Technology in Retail Employee Satisfaction” (2023)
3. Retail Gazette - “The Future of Omnichannel Retailing in Europe” (2023) 
4. European Payments Council - “The Rise of Contactless Payments in Europe” (2022)

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