Retailers to Keep Storefronts, Sharpen Online Services

For the 32nd consecutive year, The University of Alabama’s Office of Media Relations offers predictions from faculty experts for the coming year.

Competitive retailers will look for ways to adjust their expensive storefront footage while sharpening online services, says Dr. Kristy Reynolds, Bruno Professor of Marketing at The University of Alabama.

“Retailers are adopting very sophisticated analytics to monitor competitor pricing,” says Reynolds. “They know if they are competitive and whether they need to raise or lower the price.” That means if Amazon offers a short-term discount in their “lightning deal,” other online stores know immediately and may adjust accordingly.

Reynolds says more consumers are visiting big box stores to see products and ask questions and then returning home to buy online. That’s why Best Buy is closing some locations. Any new Best Buys will be smaller, geared toward tablets, cell phones and service, says Reynolds. Similar stores may follow that trend.

Another trend Reynolds foresees is stores offering more hands-on experiences using their products.

“There is still a huge segment of shoppers who like to touch, feel and have the experience,” Reynolds says. Expect more emphasis on in-person experiences unavailable online.

Reynolds predicts more retailers will begin offering products that are exclusive to their store.

“Brookstone estimates that 75 percent of their inventory is exclusive. Target and Best Buy are trying to do this, too,” says Reynolds.

And Reynolds thinks shopping mall obituaries are premature.

“I don’t think enclosed malls are going to die. The strong ones — with tenants that create an experience or offer a compelling reason to visit — will survive.”

Expect older facilities to be renovated for new uses, says Reynolds. Gyms and Costco warehouse stores are moving into some emptied malls across the country.