Contrary to rumours, the physical store is far from obsolete; it has consistently evolved. Over the past two decades in the grocery trade, store numbers in Sweden have decreased from over 3,000 to around 1,000. This transformation is a natural part of business, but the challenge lies in how well we adapt our existing store structures to change. Historically, stores primarily facilitated transactions, but with increasing digitisation, the question arises: How can stores shift from being transaction-centric to fostering stronger relationships?
In the future, stores must transcend being mere product providers, considering the broader roles they can play in local communities where customers live and work. This requires a fundamental shift in our perception of a store's role. It's not just about efficiency; it's about preparing for a future where revenue extends beyond product transactions to encompass services, introducing new roles for the store.
Here are five areas where future stores can find opportunities to engage customers and create new revenue streams:
1. The Store as an Educator
Knowledge is important. Our food is a cornerstone of our lives. Consider what knowledge the store would like to pass on to its customers. Important areas are sustainable consumption, food additives, good and simple cooking for the stressed family with children.
2. The Store as a Meeting Place
Many customers love coming to the physical store. How can this be reinforced? What could be done locally for retirees, men and women on parental leave or why not be the store in the locality that becomes the best on holidays for other cultures. Or how can the visit to pick up the postal package be made a pleasure and give the customer something extra?
3. The Store as an Experience Center
The modern customer is looking for experiences. What makes the store a destination? What specialty can be developed to makes the store the talk of the town? Is there a special product category that makes the store extra attractive? A discount department for everyone who loves bargains? Or is the customer always offered something good to eat and drink when they do their weekend shopping? Or is this the store that everyone in town knows has the nicest staff?
4. The Store as a Restaurant
You come to the store to buy food. Why shouldn't you be able to buy ready-made meals? Not just what exists today. What if the grocery store seriously contends with the local pizzeria, Chinese or gourmet restaurant? We spend more and more money on eating out. This is a clear area for potential growth.
5. The Store as a Health Inspiration
Unhealthiness in society is increasing. Both mentally and physically. Much of the ill health is linked to our modern lifestyle. What role could the store play here? Yoga classes arranged by the store? Or why can’t you be come to the store and get clear guidelines for a healthy lifestyle? We want to feel better and the grocery store, with its selection and local network can play a decisive role here.
Changing the store's role requires strong local leadership and central support for data, digitization, and purchasing power. Successful stores understand that customer relationships is key for future success. Balancing efficiency with relationship-building positions physical stores for success. It's not about choosing one over the other but embracing both. Ultimately, dedicated and competent store staff are crucial in moving the store into the future.
Original text by Martin Moström
Translation by Carys Egan-Wyer
Martin Moström
Martin Moström is a strategic advisor and the founder of Retail House. Retail House is a Nordic shopper marketing agency that helps leading brands and retail chains win the battle for the shopper in-store. Martin is also a recurring guest lecturer at Lund University.