Can Technology Save The Brick-And-Mortar Store?
The era of Amazon and e-commerce was supposed to herald extinction for brick-and-mortar establishments. But in the Bay Area, retailers are fighting back, using homegrown technologies to keep customers coming through their doors. From robots and virtual reality to digital mirrors and beacons, the region has become ground zero for testing software designed to make shopping quicker and easier — or simply more fun. That’s not surprising, given the allure of Silicon Valley. Retailers like Target, Sephora and Walmart operate research and development centers in the region. They also recruit engineers, partner with startups, or, like Lowe’s Companies, consult with innovation outfits like Singularity University in Mountain View. These efforts matter because consumers still want to shop at physical stores. Last year, e-commerce sales amounted to $341.6 billion — and while that number has been slowly rising over the years, it still represents only 7.2 percent of the $4.7 trillion in total retail sales, according to data from the U.S. Commerce Department. In other words, more than 90 percent of retail sales were firmly analog. A recent survey by software firm TimeTrade found that 71 percent of shoppers prefer to buy a product in stores, even if the same item is available online. At the same time, though, the report found that consumers don’t think much of what they experience in stores today: bad customer service; messy, confusing layouts; and uninspiring merchandise. That’s where technology comes in. Read more at San Francisco Chronicle.
