These days, it is no secret that traditional brick-and-mortar Retail stores are in fierce competition with online retailers. Given the widespread use of smartphones to access the internet and the ease and convenience of online shopping, it is no surprise that customers are increasingly forgoing a trip to the Store in favor of clicking “purchase” online. This dynamic is having a significant effect on the role of the retail store.

According to research conducted by Avanade and EKN Research, roughly 4 out of 5 retail professionals worldwide currently believe that traditional sales are the main function of a retail store, but that is likely to change within the next several years. In fact, the researchers at Avanade and EKN Research found that by 2020, traditional sales activities will no longer be the main functions of retail stores, which means the role of the retail store is set to evolve considerably. So, if the primary role of the retail store won’t be traditional sales, then what will its new role be? Let’s take a look.

Acting as Distribution Centers

As customers consistently place orders online, retailers are leveraging retail stores as distribution points to make it easier for customers to pick up goods they’ve ordered via a retailer’s website or to ensure quicker dispatch to the customer. For example, Target allows customers to pick up orders in stores that they’ve made online. As of April, more than 40 percent of digital orders placed at Target.com were either picked up at or shipped from a store. By utilizing retail stores as miniature distribution centers from which online orders can be picked up, packed, and shipped or prepared for in-store pickup, retailers can maximize the efficiency of online ordering.

Providing Customers with Unique Experiences

Just because more and more people are making purchases online doesn’t mean that the retail store will inevitably fade away into the past. In fact, retail stores will likely remain important points of contact going forward. Online retail giant Amazon, for example, is beginning to open physical retail stores where it can connect with consumers.

As part of this, it is important to note that increasingly the role of the retail store is to provide an experience that a customer simply can’t get online. Specifically, it offers the opportunity to communicate with a retailer. At makeup store chain Sephora, for example, the emphasis is on engagement with the customer, with trained beauty advisors providing individualized advice, makeup workshops, and tutorials. Touchscreen kiosks allow customers to match makeup to their skin tones and hair color. Subsequently, while the store sees high levels of online orders, it also has a steady stream of customers in its stores because the stores deliver an experience that can’t be had online.

The Retail Store: Here to Stay

In conclusion, it is inevitable that changes in technology and consumer behavior will drive major changes to the role of the retail store. However, this doesn’t necessarily spell the imminent demise of brick-and-mortar stores. To the contrary, if retailers are able to adapt to these changes, they will situate themselves for long-term success.

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