2024 saw a sharp increase in retailers investing in customer experience, with many of the RFI and RFP processes I have been involved in being driven by CX (Customer Experience) teams.
By Q3 2024, UK retail sales volumes in physical stores grew by 2.6% year-on-year, with value sales up by 2.4%, demonstrating strong demand for in-person shopping.
But what is driving this surge in in-store customer experience?
Before COVID-19, store closures were at a high, driven by a shift towards e-commerce. High operational costs exacerbated this trend, particularly among fashion retailers, leading to a steady decline in physical retail spaces.
Then COVID happened.
With nationwide restrictions, retailers had to adapt and innovate. This was when we saw a massive surge in click-and-collect and buy-online-return-in-store (BORIS) services, offering consumers greater flexibility and successfully merging e-commerce with physical stores.
In fact, 57% of shoppers now prefer this flexibility, emphasizing the critical role of stores in the modern retail ecosystem.
Beyond convenience, consumers crave the one-on-one customer experience offered by physical stores. In sectors like luxury retail, this desire translates into a fully immersive brand experience.
Not Just Retail: The Rise of Hybrid Models
This shift towards hybrid models isn’t limited to retail.
For example, gyms like PureGym and David Lloyd Clubs have reported increased subscriptions to packages that combine in-person workouts with digital access. Over 40% of members regularly use both formats, blending physical and digital.
Fitness Brands Leading the Way
Linking this trend back to retail, we can see how brands like Represent and Gymshark have successfully thrived post-COVID by creating communities within the fitness space. Both brands are now expanding their retail presence, building physical stores that complement their online offerings.
A Price-Sensitive Economy
Post-COVID, another factor to consider is the economy. While inflation is showing signs of improvement, consumers are now much more price-sensitive than before. A single negative experience can drive shoppers to explore alternatives, especially with the power of the internet at their fingertips. Retailers have one chance to deliver an exceptional experience—and that’s non-negotiable in today’s market.
An old manager of mine once said, “If you do the basics right, you will always be successful.” This starts with providing a seamless shopping experience and allowing consumers to shop how and where they want.
Unified Commerce: A New Perspective
The term “Unified Commerce” may feel outdated, but the concept remains critical. Centralizing your data is now more meaningful than ever. Using a system like XY, which integrates key retail components such as POS, OMS, and e-commerce, enables a truly seamless operation.
If you’re looking to centralize all your retail data, I’d love to have a conversation.
Feel free to reach out: