Traditional physical retail is undergoing a transformation, spurred by the growing popularity of online shopping and social media.
How much of your shopping is done online? When was the last time you went to a store? According to a recent article in The Economist magazine 1843, brick-and-mortar stores are still a large component of our buying experience, even if we don’t make a purchase at the physical store. “An increasing number of companies are opening shops, not so much to sell things – there’s the internet for that – but to advertise their ethos and to entertain,” the article explains.
This is increasingly true for millennials, who are as interested in the experience of a brand as they are in its products. Millennials are also social media influencers, so bringing them to a physical location to share an experience with their friends can pay dividends. As the article states, the average influencer can get 26 people to buy something, even if they don’t buy anything themselves.
This experience-based approach to retail is not new, but the resurgence of the trend, and its potential impact on investment opportunities, is one we will continue to monitor. Access the full article on the 1843 website.