This document proposes ways for brick-and-mortar retailers to improve the in-store shopping experience through digital technologies and data analytics. It describes a scenario where a customer Shruti receives personalized offers on her mobile app when near the store. Inside the store, interactive digital displays provide product information and recommendations. Shruti tries on dresses and uses a virtual mirror to view accessories. She then checks out quickly and has the dress shipped home, providing an enhanced experience that combines digital and physical shopping.

1. I m p r ove d
c u s t o m e r
l o y a l t y
I n c r e a s e d
r e ve n u e s
L o we r
i nve n t o r y
c o s t s
L o we r r e a l
e s t a t e c o s t s
f o r n e w s t o r e s
I m p r o ve d
c r o s s s e l l i n g
p o s s i b i l i t i e s
`
expectedretailerimpact
SWOT Analysis of Traditional
Brick and Mortar Players
R e d u c e d
p r i c e s
`
L a r g e r
r a n g e o f
c h o i c e s
T a r g e t e d
r e c o m m e n d a t i o n s
E a s y c h e c k o u t
a n d d e l i ve r y
o p t i o n s
R e d u c e d r i s k
o f r e t u r n s
currentretailerscenario currentcustomerscenario
expectedcustomerimpact
Improved in-store
shopping experience,
which gives her:
IMPROVING THE VIABILITY OF BRICK & MORTAR STORES
Enhancing the customer in-store shopping experience
Vijay Narayan
Brick and Mortar stores not able
to engage with customers on the
scale of e-commerce players.
U n s a t i s f i e d w i t h
t h e s t o r e r a n g e ,
a n d i s n o t s u r e
w h a t t h e b e s t
c h o i c e f o r h e r i s
?
L e ave s t h e s t o r e ,
l og s i n o n l i n e a n d
p u r c h a s e s t h e p r o d u c t
o n l i n e i n s t e a d
purchase online
S h r u t i w a l k s i n t o a phy s i c a l s t o r e
S T O R E
while still giving her the ability to enter the store and physically try out the product
High Inventory Costs
Limited Range of
products due to
space constraints
High Real
Estate Costs
Weaknesses
Strengths
Customer can
touch and feel
the Products
Lower Product
Return costs
Can digitize and
engage better
with the customers,
driving higher loyalty
Opportunities
Ecommerce Players
offer lower prices
Reduced footfall can
lead to closure of
stores and job losses
Threats
`
Brick & Mortar
Traditional Brick and Mortar sales stagnating
compared to online sales in Germany
Online
Increased
profitability
due to:
1 INVITE
DIGITAL DISPLAY
3
A n i n - s t o r e b e a c o n s e n d s
a p e r s o n a l i z e d m e s s a g e w h e n
S h r u t i i s n e a r t h e s t o r e , w i t h
l a t e s t o f f e r s o f t h e we e k
S h r u t i l o o k s a t t h e t r i a l
p i e c e s a v a i l a b l e i n t h e s t o r e ,
a n d r e c e i ve s f u r t h e r
r e c o m m e n d a t i o n s
f r o m h e r a p p
2
I n s i d e t h e s t o r e , t h e I n t e r a c t i ve
D i g i t a l Wa l l s h o w s S h r u t i t h e
l a t e s t o f f e r i n g s , a l l o w i n g h e r t o
f i n d o u t m o r e a b o u t t h e p r o d u c t s
s h e 's i n t e r e s t e d i n .
4
S h r u t i d e c i d e s t o t r y o n
a d r e s s s h e l i k e s , a n d
d e c i d e s t o a l s o u s e t h e
v i r t u a l t r i a l r o o m t o
s e e d i f f e r e n t a c c e s s o r y
m a t c h e s w i t h h e r d r e s s .
5
S h r u t i s c a n s t h e d r e s s c o d e a n d h e a d s
t o t h e c h e c k o u t t o f i n i s h h e r p u r c h a s e ,
r e d u c i n g t i m e s h e w o u l d o t h e r w i s e
s p e n d i n a l i n e .
6
T h e d r e s s i s
t h e n s h i p p e d t o
S h r u t i ’ s h o u s e
scanning
options
RECOMMEND
VIRTUAL TRIALS
FASTER CHECKOUTS
EXPRESS
DELIVERIES
`
WHAT’S
REALLY
GOING ON?
The store utilizes data analytics
to understand the customer better
and uses virtual trial rooms
to reduce the required
inventory in-store
newcustomerexperience
Customers migrating to e-commerce options due to
price factors and more variety of online players.
Source:
International e-commerce
study in 2016 - RetailMeNot
2017(e)2013
Revenuein€bn
Year
423bn 480bn 3%
CAGR%
92% 85%
8%
15% 21%
1%
S T O R E