The growth of online shopping has resulted in numerous store closures, raising concerns about the future of retail malls and high streets. However, Europe shows signs of a resurgence in brick-and-mortar shops, which play a vital role in boosting online sales. #ShopsOverOnline
European retailers are pouring resources into physical stores to enhance both online and offline sales. This move comes in response to rising competition from major e-commerce firms, like fast-fashion giant Shein.
Retailers aim to take advantage of people’s renewed interest in shopping now that COVID-19 lockdowns have ended. As a result, Saturday afternoon shopping sprees are becoming fashionable once more.
“I come to stores as I want to see things live, try them out, and have them immediately available,” said Francesca Marini, 28, while browsing in a mall in Rome. She said the waiting involved in online shopping spoiled the experience.
The total number of stores in Europe has slightly decreased, dropping to 4.90 million in 2023 from 4.92 million in 2022, according to Euromonitor. However, the selling space measured in square meters increased by nearly 1% and is projected to rise by 2.7% by 2028 compared to 2022.
Retailers understand that maintaining customer loyalty requires some level of direct interaction, according to Thomas Joekel. He is a portfolio manager at Union Investment, which owns shares in LVMH and Adidas.
“This is easier to achieve if you have brick-and-mortar stores rather than just e-commerce,” he said. “On the e-commerce side you can only see pictures but you don’t feel, you don’t smell, you don’t talk to somebody so it’s much more difficult to be optimistic or enthusiastic about a brand,” he said.
Since the pandemic, sports retailers have experienced a surge in demand for items like running shoes and training kits. People are eager to enjoy outdoor activities. #ShopsOverOnline
The Importance of Customer Engagement in the Shops Over Online Era
Moreover, these shops foster customer interactions, allowing brands to build relationships with consumers. This personal touch is crucial for maintaining loyalty in a competitive market. Retailers understand that blending online and offline experiences enhances customer satisfaction, reinforcing the concept of Shops Over Online.
