By Steven P. Dennis

“Reports of my death have been greatly exaggerated.” 

– Mark Twain*

Media reports highlight the dramatic shift of spending from traditional stores to e-commerce. Industry analysts and pundits predict the demise of brands with substantial investments in retail real estate. We live in an increasingly virtual world, they say, and those with deep roots in the physical realm are starting to look more and more like dinosaurs.

The transformation of shopping fueled by all things digital is profound with no signs of deceleration. The crazy little thing called the internet is changing virtually (pun intended) everything. But anyone who thinks that brick and mortar stores are going away has it wrong. Here’s why.

Brick and mortar retail can enhance the value proposition. Physical retail offers many important advantages–the ability to see and try on products, instant gratification, face-to-face customer service, social interaction and so on–that digital selling cannot readily replicate.

Purchase events matter. There is a reason that e-commerce penetration in many product categories remains low. Where the risk of buying online is perceived as high (apparel, many big ticket items), direct-to-consumer shares remain in the single digits. Brands like Zappo’s have innovated in customer service to overcome some of e-commerce’s limitations, but long-term growth potential is modest. In fact, e-commerce darlings like Bonobos, Nasty Gal and Warby Parker have begun to broaden their reach–and address flattening growth–by opening physical stores. Plenty of products–particularly perishables and low-priced items–also have underlying economic reasons why direct selling volume will remain constrained.

Consumer segments matter. Great customer intimate brands embrace the notion of treating different customers differently. When you do this, you understand the different needs, wants and behaviours of varied customer types. Depending on the product and the particular consumer, the purchase journey may begin and end at a physical store. For others, they will never set foot in a brick & mortar location. Others will research online and buy in store. You get the idea. Your mission is to understand the role your physical locations play in being intensely relevant and remarkable for the customers you need to attract, retain and grow. Then build out and customize the experience accordingly.

The blended channel is the only channel. Stop thinking channels and start thinking about a consistent, integrated customer experience for your brand. Other than products and experiences that can be delivered completely digitally, the majority of retail purchases are influenced by both the digital and physical realms. More and more data is emerging to confirm this. Your mileage will vary, but silo-ed thinking, organizations, incentives and metrics confuse, rather than illuminate.

Frictionless commerce is essential. Let’s be blunt: there’s more heat than light in the discussion of omni-channel capabilities. Strategically, the key is to hone in on how to be differentiated, relevant and remarkable for the customers you wish to serve. And then you must root out the sources of friction in your customer experience. With more consumers going back and forth between digital and physical channels in their decision journey, if you don’t make it easy to do business with you chances are there is a competitor who is ready to pounce.

Mobile adds value to physical retail. When e-commerce was either sitting at your home or office surfing the web, the distinction between digital and brick & mortar really meant something. Now with consumers untethered and having increasingly powerful devices with them 24/7, mobile becomes the great integrator–and makes the distinction between e-commerce and brick & mortar less relevant all the time.

Seismic changes ARE impacting retail. With the exception of companies in the early stages of maturity, most retailers need fewer stores and many of the stores they have will need to be smaller. But assuming that physical retail is going away any time soon is just plain wrong. The tendency to isolate e-commerce and brick & mortar performance is equally misguided.

Amazon and a handful of best-in-class e-commerce companies will continue to thrive. And new pure play digital models will undoubtedly emerge to captivate consumers and gobble up share.

But there is plenty of business to be done in physical stores. Less, but still plenty. And most of the growth in what is counted as e-commerce is not a shift to online-only brands, but rather to brands that have cohesive omni-channel strategies. Think Nordstrom and Macy’s so far. For them, stores are assets, not liabilities. But the way brick and mortar retail drives consumer engagement and loyalty is morphing quickly.

These emerging winners follow a simple but compelling formula:

• More focused.
• More differentiated.
• More relevant.
• More remarkable.
• More personalized.
• More integrated.
• See you in the blur.

* This isn’t, apparently, the actual quotation, but one that has become part of his folklore.

Steven Dennis is a senior omni-channel retail executive and strategic growth advisor at SageBerry Consulting , LLC. . He is also a Former Chief Strategy Officer at Neiman Marcus. [More about Steven P. Dennis]

Published with permission. This post originally appeared at Steven P. Dennis’ Blog on May 15, 2014. Copyright 2014. Follow Steven P. Dennis’ Blog on Twitter.

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By Lisa McCann

You always want to make a good first impression, especially when it comes to your customers. Staffing your new store opening smoothly will allow you to give customers a great first impression of your store and what your brand has to offer. There are a few key areas to focus in on that will help your business better prepare for your new store opening. 

These include: having a strong understanding of your immediate needs, a vision of the people you want to hire, a pipeline to support your vision, and a grasp on the cost effects of incorrectly staffing. 

1.    Understanding your needs

Do you have a strong understanding of your immediate needs? What is holding you back from opening your location tomorrow? 

Setting realistic hiring targets based on prior experience with store openings or other locations with similar profiles will help you not to feel under staffed from the start. Do not rush an opening! Make sure you have the right personnel to support your operations before you open your doors. When setting your hiring targets to fill your store’s needs, it is important to make sure you set timelines and budgets for each and stay within those frames. Also, identify if there are any roles you could develop internally. This may include growing an employee’s role from another location or hiring staff to start off in one role but anticipating growth within the future. 

2.    Understanding what kind of people you want to hire

What would my ideal employee look like?

Building out candidate profiles of the ideal employee can help with your recruitment efforts. Having a clear vision of the type of employees you want your new store to have will help you be more selective and create stronger screening and assessments to make sure there is a match. Creating strong job descriptions will allow you to share with your candidates a clear vision of your expectations and corporate culture. The next step is making sure your screening and assessments are measuring the right competencies and key performance areas that make for a great fit. By understanding the roles you need to fill and the people you wish to fill them, you will be hiring quality candidates who will save you time and money in the long run.

3.    Building a talent pipeline

How can I use my current candidate database?

When looking to fill roles for your new store opening, it’s essential that your start building a talent pipeline to work from. These may include candidates who are already in your company’s database from other locations who may not have been hired, but could still be a great fit for the organization. Reconnecting with these candidates will help you build a pipeline to work from. Also, connecting with potential job seekers and passive candidates on their social and professional networks can also help create brand awareness and increase your potential talent pool. This pipeline needs to continually be grown and improved to help with future needs that will arise. 

4.    Understanding the cost of turnover if staffed incorrectly

How much does turnover really cost me?

Staffing your new store with average employees may be sufficient for your opening but in the long term these are not employees who will grow within your organization. This is why it is essential to build a talent pipeline and be clear on the types of people you want to work for your business. Every company faces turnover issues, especially in the retail sector. 

On average, last year front line part-time staff positions saw a 67% turnover rate. This was followed by a 24% turnover rate for full time staff. These numbers are daunting and for a retail hiring manager they can cause major disruptions in operating a store. The costs associated with turnover can be very high and when calculating direct and opportunity costs, we found that on average the price of losing a front line retail position is approximately $2,000 per employee. This includes costs such as training, onboarding, recruiting, lost experience and lower morale. Turnover is an issue companies will always have to face but by planning and hiring the best fit quality candidates, you can help your new store opening get started on the right foot!

Lisa McCann is the Corporate Marketing Manager at Vancouver-based recruitment company, Mindfield Group. 

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Canada is an international retail ‘hot spot’, according to the world’s foremost fashion-industry trade publication. Many international retailers are contemplating Canadian expansions, following Nordstrom and Saks Fifth Avenue‘s lead. Home-grown retailers will need to innovate to compete, or risk facing demise, like bankrupt retailer Boutique Jacob. 

Women’s Wear Daily referred to it as the ‘department store effect’: following Nordstrom and Saks Fifth Avenue’s announcements that they would open in Canada, other international retailers followed. Mary Mowbray, Senior Vice President of the retail group at Colliers International in Toronto, said the following:

“The Canadian consumer weathered the downturn better. They have more money to spend and are more comfortable spending it. Traditionally there have been fewer players in the mid- and higher tiers in Canada, and that’s left an opening for more brands to enter here.”

Rents on desirable streets in Toronto, Montreal and Vancouver are all rising. On Vancouver’s Alberni Street, rents jumped 43 percent between 2012 and 2013, averaging $147 per square foot. Alberni Street recently saw Tory Burch and De Beers store openings, and several of the world’s top luxury brands are currently examining Alberni Street retail space. 

Laura Pomerantz, principal of her own real estate firm, said that growing tourism and a burgeoning Asian population in British Columbia triggered much of the expansion. Specifically, she said:

“You have a savvy and sophisticated customer in Canada who recognizes brands and is brand conscious. You have a lot of tourism between Canada and America, and that makes a built-in customer base.”

Not all is rosy for new retail entrants: Target lost almost $1 billion last year from its floundering Canadian operations, battling poor customer perception as well as empty shelves. Nordstrom Rack recognized Target’s struggles, delaying its Canadian debut until 2017. 

Some Canadian retailers will struggle with the new competition, a fate most recently exemplified by Boutique Jacob’s bankruptcy. According to retail consultant David Ian Gray, other Canadian bankruptcies could follow, if retailers fail to innovate in the face of new competition. 

Source: Women’s Wear Daily

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For the first time in Canada, May has been declared as ‘National Deals & Coupons Month‘. Both retail and deal/coupon industries have joined to offer Canadians savings, as well as raise awareness to the availability of deals and coupons for Canadians. The Deals & Coupons Month is an initiative of the Canadian Deals & Coupons Association and the Affiliate Marketing Association of Canada.

Over 60% of Canadians regularly use deals, coupons and offers and the demand continues to grow. The month-long shopping event recognizes both consumers who enjoy and benefit from the savings, and brands/retailers who understand that special promotions drive value and attention. Besides shopping in-store, consumers can also click over to the Deals & Coupons Month website where certain retailers will also be highlighted. Helping consumers know where they can save is the primary goal of the Deals & Coupons Month.

“Establishing a Deals & Coupons Month is a way to bring awareness to the shear amount of potential savings consumers can obtain in Canada”, said Albert S. Bitton, President of the Canadian Deals & Coupons Association and creator of Canada’s National Deals & Coupons Month. “We are very proud of the caliber of brands taking part in this initiative as their involvement creates a shopping event that we foresee will continue for years to come and that truly benefits everyone involved, especially consumers.”

With providers including Save.ca, one of the country’s leading coupon sites; Airmilesshops, the country’s Air Miles shopping mall; TravelAlerts – one of the country’s foremost travel promotion services; and WagJag, one of the leading deals sites in Canada, there is a steady stream of offers from quality companies available for consumers to choose from for the rest of this month.

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