Q2 2019 | Houston Retail | Research & Forecast Report
Brick and Mortar Retail in the Age of Omnichannel | Houston Retail Market Report
Commentary by Patrick Duffy MCR President
For almost twenty years, we have been hearing that the internet was going to be the death of retail. As retailers, both traditional and internet pioneers, have improved the on-line experience and changed the face of delivery logistics, it is very apparent that the
retail landscape of pre-2005 has in fact been mortally wounded. The good news is that most retailers have made adjustments which embrace the new world of Omnichannel with positive results. Omnichannel retailing is retail that integrates the different methods of shopping available to consumers (e.g., online, in a physical store, or by phone). Even traditional grocers are now fully embracing the concept of Omnichannel with both home delivery and curbside pickup that was once reserved for the uber-rich who could employ personal shoppers.
Even restaurants once believed to be immune to the impacts of the internet, are feeling the pinch (and the lift). This is especially true of the sector which relied heavily on take-out and delivery like the pizza chains (Dominoes, Papa Johns, etc.) as services such as
UberEats, GrubHub, DoorDash and Eatsy have essentially turned any restaurant who chooses to participate into a home delivery competitor.
While it is clearly true that retailers with pure commodity products, easily selected and shipped via online or phone, with limited risk to the consumer are likely to evaporate from the brick and mortar landscape, most retailers have now come to the realization that a purely online presence is not necessarily the optimal approach. Traditional online-only retailers are now opening brick and mortar outlets to complete their omnichannel offering completing the necessary "last mile" of the delivery. By improving the consumer experience at every step and every option of purchase, retailers build brand loyalty and exposure. Roughly 80% of shoppers utilize their phones (online) while shopping at a physical store. Retailers who have streamlined this process are seeing very positive results. We are seeing stronger than expected overall retail sales in the past year with significant earnings "beats" by these retailers. There is no doubt that a very strong economy, high consumer confidence, low unemployment and growing wages are major contributors to these results but there is a... Click here to read the full report: https://www2.colliers.com/
Lisa Bridges | Director of Market Research