The store has a different job now
For a long time, a store was the only place a purchase could happen. Now it is one of several. Shoppers may research online, try something in a store and buy later on a phone, or order online and collect in person. As a result, many retailers no longer ask a store simply to sell; they ask it to do a mix of tasks, including displaying products, serving as a local warehouse, taking returns and building trust in a brand.
This article looks at the store itself. The wider shift in the industry, and the effect on towns, are separate subjects.
Footfall and what it means
Footfall is the number of people who walk into a store. For many retailers it has been falling or shifting in recent years, though the pattern varies by country, category and location. Stores in busy transport hubs or large shopping destinations can hold up better than those on quieter streets.
Footfall alone does not tell the whole story. A store may see fewer visitors but a higher share of them buying, since those who make the trip often have a clear purpose. Retailers therefore track conversion, meaning the proportion of visitors who purchase, along with average spend. Some also use sensors and cameras to count visitors, which raises questions about what data is collected, an issue discussed under digital privacy.
Showrooming and webrooming
Two habits describe how shoppers combine channels.
- Showrooming: looking at a product in a store, then buying it elsewhere online, often because the price is lower. For stores, this means providing a service, such as demonstration and advice, without receiving the sale.
- Webrooming: researching online, then buying in a store. This is common for items where people want to see the product or get immediate possession.
Both are common, and many shoppers do each depending on the product. Retailers respond in different ways. Some match online prices; some offer exclusive ranges that are harder to compare; others focus on service and expertise that online listings cannot easily provide. Some brands have opened stores primarily to display products and let customers try them, with sales happening online or through staff on tablets. In that model the store works partly as marketing, and its success is measured by more than the till total.
Click-and-collect and in-store fulfillment
Click-and-collect, where customers order online and pick up in a store, has become common among larger retailers. It offers several advantages:
- The customer avoids delivery fees and waiting at home for a courier.
- The retailer saves on last-mile delivery, which is often the costliest part of shipping.
- A customer coming to collect may buy something else.
It also creates demands. Staff must pick and pack orders from shelves or a back room, inventory records need to be accurate, and pickup areas need space. Some stores have turned part of their floor or car park into pickup zones. Others ship online orders directly from store stock, which can speed delivery but also means shelves empty faster for in-store shoppers. Getting this right depends heavily on inventory systems, which is one reason retailers invest in data analytics to forecast what to hold and where.
Returns
Online purchases are returned more often than in-store ones in many categories, especially clothing. Stores increasingly act as return points, saving customers the cost and effort of mailing items back. This can bring people through the door, though it also adds work for staff and may reduce margins if returned goods cannot be resold at full price.
Smaller, flexible, more experiential spaces
Because a store no longer needs to display the entire range, some retailers have reduced floor space or changed layouts. Common changes include:
- Showing a selection of products with the full range available to order on screen.
- Adding fitting areas, demonstrations, workshops or cafes to encourage visits.
- Using digital price tags and shelf labels, so prices stay consistent with the website.
- Offering contactless NFC payments or mobile checkout to shorten queues.
These changes reflect a belief that the store’s strengths are things a website cannot easily copy: immediate possession, hands-on testing, personal advice and social atmosphere. Whether they work depends on the retailer and category, and experimental formats sometimes fail.
Closures and consolidation
Not all stores adapt. Chains have closed locations in many countries, particularly those selling goods that move easily online, or those that were already burdened by high rents or debt. Closures often cluster in weaker locations, while the remaining stores handle more online activity. The consequences for jobs and local spending are covered elsewhere under local economies, but for the store itself, the usual pattern is fewer but more varied and carefully chosen locations.
Staff roles
Employees are affected too. Fewer people may be needed at tills if self-checkout or mobile payments are used, while more are needed to pick online orders, handle returns, and advise customers who have often researched a product beforehand. Customers may know as much about a product as the assistant, so product knowledge and service skills matter more than before. How much stores invest in training varies widely.
Looking ahead
Stores are likely to remain, but in more varied forms. The balance between selling, showing, collecting and returning will differ by product and region, and future shopping habits are hard to predict. For a reader, the simplest way to see this in practice is to notice what your local stores now offer that they did not ten years ago: pickup counters, return desks, repair or demonstration areas. Those additions show how stores are adapting to online competition.