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The retail apocalypse

By Don-Alvin Adegeest

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Retail

The retail landscape is changing at such a speed brands are evidently failing to keep up. Perhaps that is why in the US in the first three months of 2017 there were nearly three thousand shop closures. That is nearly triple the 1,153 store closures that occurred in the same period in 2016.

Retail bankruptcies, deathly quiet shopping malls, deserted high streets and shrinking store portfolios could almost make you think retailers are on the verge of extinction or a retail apocalypse.

And this is not just occurring in America. Around the world consumer spending is shifting to that of experience. Buying clothes is no longer a priority. Fast fashion fixes for goods we don't need have been replaced with experiences that bring a different type of satisfaction. Traveling, eating out and socialising have become priority purchases for millenials and generation z.

Like fashion, retailers are being forced to reinvent themselves

Retailers are therefore forced to reinvent themselves and the reality of the in-store environment is changing to incorporate a new shopping experience. The traditional brick and mortar business is becoming obsolete.

Retailers like Farfetch are setting a new precedent. Their first physical store is much more than a shop - it is a retail platform that uses customers' online purchase history to inform shop clerks.

Other examples of innovative retail experiences include in-store customization, like 3D printing , a service offered at Ministry of Supply in Boston. Nike is now operating stores that have football fields and basketball courts on their premises.

Amazon, too, remains one of the most innovative companies on the retail landscape. The internet has changed the way we buy everything from clothing to automobiles to holidays, but what started as an online platform for selling books has morphed into a company that can deliver a box directly to your doorstep, rethinking logistics as we know it. Their new store fronts are check out free, with all purchases being registered by an app in your phone.

Ecommerce is no replacement for the experience of shopping in store, touching a product and being able to try before you buy. People still prefer to shop in stores, but stores are failing to meet consumer demands and rival the online experience.

The retail apocalypse, source Quartz, photo credit: www.theatlandtic.com, Farfetch store of the future

retail apocalypse