Retail’s impending demise has been predicted for years, and sign makers, as major industry suppliers, have been accordingly concerned. But should we really be worried?
First, it was the internet and ecommerce; with the convenience of ordering online, why would anyone bother going to a store?
It turns out—while ecommerce has grown immensely and grabbed market share from brick-and-mortar—people still shopped in stores, and the retail sign market was still safe. Go figure.
Then, along came the once-in-a-century event: a global pandemic. With all the lockdowns, and consumers being more safety-conscious and wary, retail must finally be obsolete, right?
Not so fast.
But there is another need that ecommerce can never fill—experiences, and that is where the new retail sign and digital media market is heading.
Try this: Go out right now and ask anyone whether they’ve shopped less since COVID-19 started. You might be surprised. While rates of physical shopping did drop in March because of lockdowns, retail rebounded just as quickly from May through June, with retail increasing 7.5 percent in June over May—with a 1.1 percent increase over June 2019.
So, what’s going on? It seems that many people prefer shopping in-store, and that’s not likely to change. The likely reason: Pandemic or not, we’re social creatures. Although the May and June sales jump can be attributed to stimulus and unemployment money, it still indicates that people are ready to shop, even amidst a pandemic.
Certainly, COVID-19 has accelerated ecommerce adoption, but that doesn’t spell death for brick-and-mortar. Traditional retail and ecommerce can coexist.
We’ve seen this before. When the Kindle was introduced in 2007, we heard grandiose predictions about the end of print. Look around, though, print books still exist, and the majority of US adults are still reading them.
The introduction of new technologies does not always eliminate existing industries. Occasionally, a new market is created alongside the existing market, or the market simply expands to accommodate them both. Most significantly, many times the new technology cannot fulfill the need that the existing industry fills.
Traditional retail is one such case. Pre-ecommerce, retail was mostly based on necessity. If you needed an item, there wasn’t much choice beyond purchasing it from a physical store. Ecommerce now means that you can purchase items without ever stepping foot in a physical shop. But there is another need that ecommerce can never fill—experiences, and that is where the new retail sign and digital media market is heading.
In the nineteenth century, America saw the adoption of the general store. These stores were usually the first businesses to be opened in a new town. The general store was not only a place to purchase commodities—it was a gathering place. Townspeople and farmers would frequent the store to talk about the news or discuss politics. In other words, the general store provided experiences along with its merchandise
The goal for retail going forward is, in a way, to emulate the general store. In an interview with Big Picture, Kevin Foster O’Donnell explained that “Physical stores have a significant advantage; they’re excellent venues for memorable shared experiences and customer-centric storytelling.”
There is concern about the future of experiential retail in a post-COVID world, but that concern is likely overblown. Humans need interaction and experiences, and retailers can thrive by tapping into that need.
Retail is going to be alive and well, but also, evolving. That means sign makers should always be on the lookout for new businesses and trends.
The pandemic, mandated social distancing, and consumer health concerns may put a damper on socializing, but these factors are only temporary. The world will recover, people will go out again, and retail will be at the center of that recovery.
Recovery for discretionary retail may seem far off, but the New York Times reported in a recent article that some businesses in these categories are already witnessing a rebound: “Mr. Moquin, the jewelry store owner said that . . . over the past two weeks, it was as if a switch flipped and sales have “been on fire,” . . . Mr. Moquin’s customers are back in force, buying “anything with diamonds.””
To be sure, COVID-19 has altered retail, and that change will likely be permanent. But that means retailers—and therefore, sign makers—rather than closing shop, will simply have to adapt to new opportunities.
In the words of Big Picture: “Consider a new notion: “Retail is evolving.””
New markets are opening up and existing ones expanding. In June, sporting goods, hobby, and musical instrument sales, for example, surpassed May sales by 27 percent, and even rose 21 percent over June 2019 sales.
Megan Searfoss, the owner of Ridgefield Running Company told the New York Times that she is convinced that small businesses are where the market is pivoting, as they “have become more appealing amid the pandemic . . . “Big malls may be going away, but this is not, as long as a small business is investing in technology and experience.” Ms. Searfoss said.”
Going forward, sign makers cannot be complacent. As stated before, retail is going to be alive and well, but also, evolving. That means sign makers should always be on the lookout for new businesses and trends. This also indicates thinking proactively about the retail process and actively advising businesses. Rather than simply contracting with them, the sign maker should lead the way.
Digital media businesses should also start to think differently about printing. Kevin Foster O’Donnell told Big Picture that in experiential retail “We try to blur the line between architecture and communication graphics . . . That way, printing is an integral part of the architecture, not something applied separately .” Through communication with retailers and innovative thinking, sign and digital media businesses can lead the way in navigating the path to success in this new reality.
Rob Perl is the director of consumer affairs at S&F Supplies. Rob makes it his mission is to find the data and trends that are relevant to our customers, to help you maximize your profits and growth as a business.