As online competition forces some stores out of business, experts offer technology-based strategies that could help physical retailers stay relevant.
Last year, more than 8,000 retail stores closed their doors, according to Business Insider. It was the highest number of the century, surpassing the last record set in 2008, when the Great Recession put more than 6,000 stores out of business, according to Credit Suisse, a financial services company. Now, Business Insider predicts that more than 3,800 stores will follow suit by the end of 2018. For brick and mortar businesses that are falling behind online competition, it might be necessary to make some changes.
According to Kelly Stanley, a lecturer of telecommunications who specializes in sales and promotion at Ball State University, businesses should recognize that customers’ desires have changed across generations. Physical stores should pay attention to the demographics they’re targeting. She says if the business is trying to appeal to an audience that uses social media, then brick and mortar needs to adapt.
Physical stores could increase sales by using new technology and incorporating more social media strategies, Stanley says. Even if stores don’t wish to make sales online, they can still promote through social media, attracting customers to their locations. This might be accomplished by posting about in-store-only deals and other special events. Stanley says retailers can also engage audiences on social media by posting human interest stories or publishing blogs.
This news brief was originally published in the fall 2018 print edition.
