News broke late last week that online giant Wayfair was opening it’s first brick and mortar store in the Chicago area. If we hear repeatedly that “retail is dead”, why would Wayfair take this gamble and open a physical store? Likely because they know what we know: that more than 80% of purchases are made in person, according to the US Census Bureau. This recent announcement is just one example of a broader trend: retailers are making a strategic pivot towards catering to today’s shoppers.
When you think it through, it really isn’t surprising that Wayfair is opening a physical store. First, furniture, especially things like sofas and chairs, are more likely to be purchased by someone who can sit on the piece of furniture they need to purchase. While online shopping offers convenience and accessibility, many shoppers are rediscovering the value of tactile experiences and personal interactions that can only be found in traditional retail settings. The ability to see, touch, and try products in person provides a level of assurance and satisfaction that online platforms struggle to replicate. Their new store, located in Wilmette, IL, is certainly in an affluent area outside of the city, but close enough that those with lower incomes living in the city can make it there to see the furniture in a store. We mapped the new location showing median household income using level 7 hexagons below.
Moreover, the rise of retail spaces underscores a broader cultural shift towards prioritizing experiential consumption. Today’s consumers are not merely seeking to purchase products; they crave immersive and memorable shopping experiences. Brick-and-mortar stores offer experiences for the consumer, from interactive displays to curated environments designed to evoke emotions and inspire loyalty. In an increasingly digital world, the physicality of retail spaces holds a unique allure, drawing customers in with the promise of discovery and connection. There was once a time when going to the mall was the Saturday activity of many households, a trend likely to return if retailers provide engaging experiences to draw shoppers in.
The closure of stores like Bed Bath and Beyond and BuyBuyBaby provides an opportunity for retailers looking to expand into the brick and mortar space and shape the retail experience for their customers. If the store in Chicago is successful, Wayfair could look at taking over some of these big box storefronts in more cities, expanding their presence. Site selection will become critical for businesses looking to make a splash on the retail scene. So, don’t call it a comeback; retail is just getting started.
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