These brands offer hope to others seeking to be part of the brick-and-mortar revival. Here’s what you can learn from them.
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There’s no denying that 2017 was a bad year for many major retailers, with companies like Sears, Gymboree, Payless, RadioShack and Foot Locker either filing for bankruptcy or shuttering stores completely.
Related: The Do’s and Don’ts for Opening and Operating a Successful Retail Store
The casualties have continued into 2018: In March, Toys “R” Us announced it was in the midst of closing and selling off all of its stores in the United States.
And these financial woes have not been unexpected: Years of debt, changes in consumer habits and the inability to steer traditional retail funds toward ecommerce platforms are the factors to blame, according to analysts and court filings. (Not to mention the Amazons and WalMarts of the world, which are offering the same products at lower prices.)
How can today’s retailers compete? The truth is they can’t — unless they’re willing to adapt to the rapidly changing retail landscape. And there are actually retailers out there that can do this. Consider the following four retailers and brands that have learned how to navigate the minefield and are now reaping the benefits.
B8ta
(Estimated number of employees: 11 to 50; estimated revenue: $19.5 million U.S.)
Technology startup b8ta is revitalizing retail with its line of stores (nine and counting), which give shoppers a hands-on opportunity to try out an array of tech gadgets and products in-store before buying them.
Unlike other retailers, the company sees none of the profits — instead, making its money by leasing space to product makers on a month-to-month basis. Here, data informs every decision, with inventory continually changing, based on a product’s past performance and user interest. Those insights then get shared with product makers, who use the information to evaluate their marketing efforts and improve R&D.
Last but not least, b8ta’s stores are beautiful (Evidence? B8ta recently took top honors by winning the Store of the Year award at the 47th annual Shop! Awards).
Key takeaway: B8ta’s try-before-you-buy model is nothing new, but the way it approaches analytics certainly is. By monitoring all levels of store data, from in-store execution to sales, modern retailers can stay on top of shifting consumer trends and ensure their businesses don’t become obsolete.
Glossier
(Estimated number of mployees: 11 to 50; estimated revenue: $86.4 million U.S.)
Although it only opened its first retail space less than two years ago, Glossier, Emily Weiss’s mllennial-friendly blog-turned-beauty brand has become the talk of the cosmetic industry. One big reason is its no-nonsense approach to taking the…
