The idea that physical stores and displays will disappear in the future is false.
Of course, some stores close—just as many others open. It is false to claim that the rise of e-commerce is proportionally closing down physical stores.
In the history of Western retail, there have been several real apocalypses, especially for "mom-and-pop" stores, mostly due to macroeconomic crises or the arrival of large department stores (e.g., Walmart) and convenience stores (e.g., OXXO). During times of economic prosperity, more stores have always opened than closed, and this trend will continue in the coming decade.
There are currently far more physical stores than there were 10 years ago, and in the next decade, there will be even more—primarily because there will be one billion more people in the world. Internet penetration globally is approximately 50%; more than 3 billion people still do not have internet access.
E-commerce is not the killer of the physical store, but rather a fantastic complement which, over time, we hope will become highly profitable for retailers.
Growing as a brand, expanding with new formats, reducing operational costs, and improving shopper knowledge are some of the key reasons why retailers remain so important in the market.
Physical stores are essential from a profitability standpoint.
The main advantages that physical stores have over virtual stores include:
1. Product Experience
Being able to touch, smell, and see the product gives the shopper a direct opportunity to verify its quality. This remains the most powerful reason for shopping in person. One of the main concerns of online shoppers is that the product may not meet their expectations.
2. Purchase Security
Despite technological advances, many consumers still distrust the internet. This has led many to feel uncomfortable with e-commerce and prefer to shop in person.
3. Immediate Access to the Product
While almost all online stores have significantly reduced delivery times, none can compare to the immediacy of in-store purchases. Shoppers walk out with the product the moment they pay for it.
Additionally, buying online often includes shipping costs, making the same product more expensive than purchasing it in a physical store.
4. Atención Personal.
Ninguna tienda en linea puede compararse con el trato que el personal de las tiendas físicas le dan a los Shoppers, siempre y cuando el personal realice su trabajo de la manera correcta. Para muchos productos y servicios, una demostración/explicación del producto en físico es vital.
5. Enriquece la ciudad.
Nadie se imagina una ciudad sin comercio físico, ya que el comercio físico es fundamental en la vida/actividad social y económica.
œSegún el informe Next generation in-store technology: Where do shoppers and retailers stand? Del Reino Unido, un 94% de los consumidores, visitan las tienda físicas mientras que solo el 6%, realiza compras en línea. 1
¿Cuál es el Rol de la Tecnología en el Retail?
El paso del tiempo y la llegada de nuevas tecnologías han logrado que la industria del retail se encuentre experimentando una gran transformación, que ha permitido mejorar la manera en la que trabajan las empresas, así como mejorar la interacción con el consumidor final. En la actualidad, los Retailers tienen frente a ellos un enorme abanico de soluciones tecnológicas y el reto al que se enfrentan es decidir cuáles deben
de ser incorporadas como prioridad a su negocio con el objetivo de incrementar el valor ofrecido a sus Shoppers.
Uno de los nuevos paradigmas de consumo es la Omnicanalidad, que con su llegada trajo un verdadero cambio en los procesos de la logística del retail, buscándose adaptar a los requerimientos de un consumidorque se relaciona con la empresa a través de múltiples canales.
Un ejemplo puede ser comprar vía web y si el producto no fue de su agrado quejarse en redes sociales y posteriormente devolver el producto en la tienda.
Es importante destacar que para que el ominicanal funcione correctamentamente se utilizan diversas tecnologías.
4. Personal Attention
No online store can compare to the personalized service provided by in-store staff—assuming the staff do their job well. For many products and services, an in-person demonstration or explanation is vital.
5. Enriches the City
No one imagines a city without physical commerce, as it is fundamental to both social and economic life.
According to the UK report "Next Generation In-Store Technology: Where Do Shoppers and Retailers Stand?", 94% of consumers visit physical stores, while only 6% shop online.¹
Time and the arrival of new technologies have driven a major transformation in the retail industry. This transformation has improved how companies operate and how they interact with end consumers. Today, retailers have access to a vast array of tech solutions, and their biggest challenge is deciding which should be prioritized to increase the value offered to shoppers.
One of the new consumption paradigms is omnichannel, which has truly changed retail logistics processes, adapting to consumers who interact with companies through multiple channels.
For example, a shopper may buy online, complain on social media if unsatisfied, and then return the product in-store.
For omnichannel strategies to work properly, various technologies are required.
According to a PwC study, 80% of U.S. companies plan to invest in omnichannel strategies.²
Despite the existence of digital commerce, many customers still prefer to see, touch, and smell physical products—experiences that cannot be replicated through a screen.
Technologies like augmented reality, instant delivery, and social search enhance big data, which helps improve personalization and logistics, significantly increasing sales.
Top brands and retailers must stay up to date with digital trends, as this gives them better insights into their shoppers and a more complex understanding of their needs.
Here are some of the most relevant technologies currently used in retail:
1. Immersive Technologies
Augmented reality (AR) and virtual reality (VR) have moved from futuristic concepts to present-day tools that are transforming the retail industry. AR adds virtual elements to the physical environment, while VR offers immersive experiences through a headset, allowing shoppers to try products virtually as if they were in the store.
"According to Gartner, 100 million consumers used AR to shop online and in retail in 2020."³
2. Big Data
Algorithms collect useful data for stores, such as customer flow at specific hours or dates. This allows for trend forecasting and more efficient store management.
According to the UK report "Next Generation In-Store Technology: Where Do Shoppers and Retailers Stand?", 30% of retailers use facial recognition technology.⁴
Facial recognition uses computer vision and machine learning to anonymously capture shopper data without written consent.
What data can facial recognition collect?
a) Age range
b) Gender
c) Ethnicity
d) Mood
3. Smart Displays
Smart displays aim to revolutionize POP (Point of Purchase) exhibits. They evolve from static elements into intelligent solutions that analyze shopper behavior and track inventory in real time.
With smart displays, your brand is presented dynamically through video animations. Prices can also be updated automatically worldwide and in real time.
These displays often include facial recognition (anonymously), allowing for demographic analytics (age, gender, ethnicity), shopping frequency, product reach, and more. Real-time inventory tracking helps avoid stockouts and ensures your product is always available—minimizing unnecessary labor.
Finally, if your company is eco-conscious, this is an ideal solution.
4. Robots
Advances in AI have enabled the use of robots in retail. One example is the smart shopping cart developed by Caper, which assists customers during their shopping journey, shows discounted products on a map, and even enables direct cart-based payments. This innovation not only enhances the shopping experience but also supports sales goals.
5. Virtual Assistants
This technology gained popularity during the pandemic, replacing in-store personnel and eliminating physical contact and sampling.
It consists of a screen that plays a pre-recorded video introducing your product. It interacts with the shopper, who scans a QR code, sends a text, and receives a ticket to pick up a free sample from a nearby display or fridge. The shopper takes both the ticket and product to checkout—where it’s not charged—allowing them to sample the product and get to know your brand.
Growing as a brand, expanding into new formats, reducing operational costs, and improving shopper insights are just some of the main reasons why retailers remain vital to the market.
Physical stores are essential for profitability, shopping experience, immediate product access, purchase security, and personalized service.
Today’s technological advances at the point of sale are powerful tools to create engaging shopper experiences—and effective strategies to influence unplanned purchases.
Explore the different strategies that have emerged over time, apply them to your brand, and your sales will surely grow.
Learn more about grocery store displays.
