Retail has been around since 9000 BC when bartering and the exchange of livestock was commonplace. Even the concept of malls isn’t that new—Ancient Greeks had a similar idea when they opened markets with various merchants offering their products in the same location.
But, as the poem says: “Nothing gold can stay.”
We can see this reflected by the sheer number of retail stores and chains closing in recent years. Several shopping center staples that have seemingly been around forever, like Sears and JCPenney, have filed for bankruptcy and shut down a number of locations in an attempt to stay afloat; while other retail giants, like Toys “R” Us, have closed their doors altogether.
Even without the impact of the global pandemic - which has, admittedly, closed several stores - most of the businesses that file for bankruptcy have been operating at a loss or barely staying afloat for years.
The question stands: Why?
Retail, with such a long history in human society, is dying. Or is it just evolving?
Looking at the past to understand the future of retail
To truly grasp what has happened to the retail industry over the past two decades, we have to look further back in history. For centuries, retail weathered societal changes and tumultuous times, only to be defeated in the digital era.
Let’s dive deeper to see what exactly led to retail’s (un)timely demise.
Family-Owned General Stores
During the 18th and 19th centuries, there was a rise of small, family-owned stores that sold everything in one place. From food to tools, these stores had it all. They were spread across the U.S. and every small town had its own version of the general store.
From coast to coast, these stores were pillars of the community. In some places, they might have been the only option for local shoppers; but even in the face of competition, these “mom and pop” shops had additional appeal.
The stores were run by people who knew their customers well and understood the community’s needs, sometimes right down to an individual level. Coming to these stores was like going to see a friend—it was a social setting where you could catch up on small talk and town news in a familiar and cozy atmosphere.
Department Stores
As manufacturing (along with and other more affluent industries) replaced agriculture as the main industry in the U.S., consumers sought out more upscale shopping experiences. Enter: department stores.
Early department stores like Macy’s and Sears were influential on many aspects of people’s lives. From influencing fashion and defining “luxury” to starting long-standing traditions like the Macy’s Day Parade, these retail brands left a significant cultural mark.
The customer experience was crucial—trained staff would help customers choose apparel or household items, make recommendations, give advice, and often work one-on-one with customers until their shopping needs were met. Furthermore, department stores often held events that educated people more on what’s “in-vogue” or set up entertainment events in stores.
For department stores, experience was everything.
Shopping Malls
During the 1950s, the beginnings of the modern day shopping mall began to emerge. As the automobile industry grew, malls began popping up on the outskirts of towns and cities. Because malls were so large, they were often located close to the city but not quite within walking distance. As cars became a staple of every home, shopping malls started thriving.
Early mall shoppers were attracted to the variety of specialised stores in one place, along with access to communal activities, restaurants, theaters, and more. Malls were meant to be the pillar of their communities - somewhere families could go for cultural and social elements.
Big Box Stores
The availability of cars pushed another form of retail - the big box stores. Rather than a variety of specialised shops, big box stores took the old school general store and blew it up. These stores reintroduced the concept of a one-stop shop where you can buy almost anything. Big box stores are cheap, convenient, no-frills establishments where people can quickly get what they need and get out.
The main selling points of big box stores are convenience and low prices.
Ecommerce
The latest evolution of retail came in the form of ecommerce. As computers made their way into our homes, and later our pockets, online shopping proved to be a convenient and enjoyable alternative to brick-and-mortar stores.
Customers can now compare prices, connect with brands quickly through live chat, and score deals they wouldn’t have had access to at a physical store location. And even though only 2% of traffic converts on the first website visit, online retailers are always striving and competing to provide a better customer experience.
Lessons for the future of retail
Although ecommerce itself is a digital innovation, online store owners and marketers can learn a thing or two from the history of retail. As we make strides to further improve retail experiences, reflecting on what made retailers successful in the past can help us address changing customer needs.
From mom and pop shops, ecommerce stores can learn about the value of personalised service and the social aspect of retail. Fortunately, communication tools such as email, SMS, and social media make it easier to increase customer engagement and establish a social connection.
Meanwhile, Department stores can teach businesses valuable lessons about customer experience.
Remember, these stores didn’t just sell products - they presented themselves as authorities, offered advice, and hosted events. Retailers could achieve a similar effect through blog posts, videos, webinars, and other types of digital content.
Furthermore, ecommerce stores could train staff to work one-on-one with customers through live chat, thereby providing support through the decision-making process and giving customers that upscale department store feel.
And while malls may seem outdated, the basic idea behind them isn’t. By harnessing the essence of a bustling shopping mall - that sense of belonging to a community - retailers can build relationships and gain the loyalty of their customers.
Finally, ecommerce already possesses what makes big box stores so attractive - convenience and low prices.
Conclusion
By combining all of these points together, retailers can create memorable experiences that bring customers back to their shops again and again.
Founded in Denmark in 2015, Plytix is a headless product information management system designed for fast-growing product brands.
