2020 has been quite the year, and there are another two months left. While the coronavirus has transformed how brands do business both online and in physical retail, in-store experiences still remain important as ever to customers and brands. Unlike in the spring and summer months, stores are now open and more importantly, shoppers are shopping. In fact, more than 70% of shoppers plan to spend the same or more on their holiday shopping.
As brands close the page on 2020, it’s important to finish the year strong and build momentum into 2021. Despite recent headlines, brands with brick-and-mortar stores are at an advantage. As Retail Dive reports, “there is still momentum in the consumer economy” and many Americans’ savings are being “transferred into retail.” With costs continuing to rise in the hyper competitive e-commerce landscape this holiday season, launching a short-term store could pay real dividends for brands looking to break out.
With Leap’s turnkey Platform approach, brands can launch fully branded pop-ups and end the year on a high note. Here’s why:
Shoppers are shopping safely and they’re buying
Today’s shoppers are looking for safe experiences, and retailers must think critically about the safety and sanitation of their stores. The best stores, including all those that are Leap-operated, are adhering to safety guidelines and taking all precautions necessary for the retail staff, in-store shoppers and brands.
Local shoppers are looking for activities where they can escape their home/office and venture out and enjoy themselves. Enter retail therapy. Across our Platform, we are seeing over 200 steps a day in some stores. Retail Dive reports that shoppers are also shopping with intent (rather than just browsing), resulting in higher conversions and ultimately more sales. What’s more, a report just released by CBRE shows that “retail sales rebounded to pre-COVID levels in Q3 as consumer sentiment improved” which is a promising sign for Q4 and the holiday season.
Stores do more than just generate sales
A physical storefront is a great tool to acquire valuable customers and allow shoppers to experience brands in real life. However, in today’s landscape, retail stores must be much more than just places that capture the passerby. By leveraging technology and meeting the shopper on their terms, stores need to drive holistic growth. From virtual appointments, Buy-Online-Pick-Up-in-Store, accepting online returns, to establishing stores as fulfillment centers, stores that integrate omnichannel pathways will unlock more sales and better experiences. “There’s a need to connect the dots from consultation through commerce to deliver a live transactional capability,” TotalRetail states, and the “conversion from [in-person] appointment to sale is high (60 percent to 75 percent)”. The role of a store remains important, especially to service “both the physical and digital customer”concurrently, and it provides long-lasting customer relationships and brand loyalty.
From order fulfillment, to clienteling, to appointments, and even last mile delivery, brands must operate stores holistically to save money on logistics and maximize revenue beyond the four walls of a store. With Q4 sales often making up +40% of a brand’s revenue combined with the rising costs in digital, brands who leverage stores holistically will win.
Brands can enter new markets without the traditional costs or risks
The current real estate market is creating new opportunities. Major retail corridors now have availability and pricing has come down significantly. In fact, many locations on our Platform have zero base rent. As we launch new stores in Scottsdale, Dallas, Austin, West Palm Beach, Miami and more, there are opportunities to pop up in warm weather markets that are less disrupted by the pandemic. Lastly, with Leap signing leases and covering the majority of upfront development costs, many of the risks of retail are removed.
There are just ten weeks left in the year and 2020 still has upside. It’s also providing unique opportunities. With our turnkey approach and the ability to launch fully operational, branded pop up stores in less than 30 days, the time is now. Get in touch with us to learn how.
