‘Frictionless’ Commerce Versus the ‘Social and Tactile’ Experience of Physical Retail

BY Australian Retailers Association
12 January 2018

If an, admittedly overly simplistic, conclusion is reached between the limitation that the lack of a physical store network put on Amazon’s retail ambitions and it’s enormous acquisition of Wholefoods, the importance of a physical location is illustrated.

It is interesting to suggest that we are reaching an inflection point; where after years of ascendency as traditional retail struggled to transform their online customer experience, the online retailers are now searching for physical retail locations to have an effective offline engagement with consumers. Retail is now attempting to merge the idea of frictionless commerce and all the aspects of online shopping that consumer’s enjoy with the aspect of tradition retailing that we all love; the tactile and social experience of shopping in a store.

This is making the location selection of your next store more important than ever

Will it be a financially successful location?

Is it complementary to market coverage?

Will there only be minimal impact on the existing network?

Does it optimise market overage and provide customers with better access to our products and services?

Consumer’s expectations have increased; online has meant the demands placed on retailers have only intensified. For those looking to invest in the physical expansion of their stores, the pressure to make an informed and successful decision is greater than ever.

We are all aware that data driven insight is now an essential ingredient to making the best business decision. Use of data analysis, data visualisation and spatial analysis software should then be a critical part of your retail location decisions. For most of us, the deep pockets of Amazon are not a solution to successful physical store network expansion. And for many of us, optimisation of the store network is a very important consideration.

Retailers must use the tools available to them to make informed decisions. There is gold in these tools and there are answers in their data. Using the right spatial analysis tools and data visualisation techniques can reduce your risks and significantly increase your chances of success.

Experian is regarded for its best in class consumer insights; and these coupled with sophisticated spatial analysis tools and experience in data driven decision making, can assist you make your next retail location decision.

Experian helps brands transform their marketing by harnessing the power of customer data. Their suite of marketing tools is designed to give businesses a single, holistic view of their customers. Not only who they are, but how best to approach them, when, and with what content. For more information visit experian.com.au/marketing-services

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Australian Retailers Association

Founded in 1903, the Australian Retailers Association (ARA) is Australia’s largest retail association representing Australia’s $310 billion sector, which employs more than 1.2 million people. As the retail industry’s peak representative body, the ARA works to ensure retail success by informing, protecting, advocating, educating and saving money for its 7,500 independent and national retail members throughout Australia. For more information, visit www.retail.org.au or call 1300 368 041.

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