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Retail evolves together with consumer habits

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Evidence of e-commerce’s power to recast the way consumers shop continues to accumulate.

Evidence of e-commerce’s power to recast the way consumers shop continues to accumulate.

Whole Foods Market and Instacart disclosed some telling statics earlier this month when they observed the first anniversary of their partnership, which uses digital technology to connect customers with personal shoppers, who then fill their orders and deliver them to their door.

To demonstrate the scale and success of the program, which is currently available in 17 major cities across the United States, the companies cited some figures for specific items, along with fanciful illustrations. During the past 12 months Instacart has delivered 2.2 million bananas from Whole Foods, which, if placed end to end, would stretch from Boston to Philadelphia; 1.25 million apples, enough to make a pie the size of the infield at a Major League Baseball park; and 4 million eggs, which would make an omelet big enough to serve the nearly 1 million residents of Austin, Texas, where the supermarket chain is headquartered. A more telling number is the 970,000 hours the partnership gave back to consumers by handling their grocery shopping for them, albeit at a cost that varies depending on the desired turnaround time.

Another indication of e-commerce’s increasingly significant impact is Macy’s recent announcement that it intends to shutter 35 to 40 brick-and-mortar stores, representing about 1% of its total, early next year. In and of itself, the move isn’t all that unusual; good retailers regularly prune their store base.

What’s noteworthy is the emphasis that Terry Lundgren, the department store operator’s chairman and chief executive officer, placed on the company’s omnichannel strategy. While discussing the pending closures, he said Macy’s stores will continue to perform their traditional function as "places to shop, relax and be entertained," but also serve as fulfillment centers for home delivery; locations where customers can pick up online orders; and, in 17 markets, points of origination for same-day delivery.

The news out of Whole Foods and Macy’s demonstrates that e-commerce and technology are altering the way that consumers interact with retailers of all kinds, and, because of that paradigm shift, the role of the store needs to evolve. Brick-and-mortar retailing isn’t going to disappear anytime soon, but before long it will likely look very different than it does today.


ECRM_06-01-22


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