The Transformation of Retail

The progress of online shopping has been amazing and now represents close to 10% of the overall purchases made in many parts of Canada. But the growth in e-commerce hasn’t turned out to be the threat everyone expected for brick-and-mortar retail.

Consumers continue shopping in physical stores and enjoying the engagement that brick-and-mortar retail provides, especially when it comes to personal treatments and customer services. One of the biggest transformations becoming apparent in shopping centres is that they’re becoming unofficial community centres for neighbourhoods, especially suburban ones.

Retail continues to draw visitors, but it’s no longer the primary motivation. Canadians are increasingly seeking shopping centres to provide an additional level of experience. Many lifestyle services such as restaurants, health care services and fitness centers and spas continues to gain popularity, and leisure and entertainment features such as arcades, indoor water parks and skating rinks are becoming trendier and even the norm for shopping centres.

The new digitally-enabled shopping experience is becoming a popular way to connect brick-and-mortar with e-commerce. E-commerce technology allows retailers to expand their relationship with customers, extending it to before and after the physical visit. They can further engage with consumers on multiple levels and increase the chances of their return to shopping centres. Retail is undoubtedly changing dramatically, but physical stores and shopping centres are proving to play a key role in today’s society, especially within suburban neighbourhoods.