Inside Outdoor Spring 2020 Issue

In-Season Inside Outdoor | SPRING 2020 23 magnitude could push a significant num- ber of brick-and-mortar stores into loss- making territory,” said the research firm. That’s likely why 76 percent of ap- parel retail executives and 45 percent of small-box specialty retail executives said they plan to improve omnichannel integration in store as a reaction to CO- VID-19, showed McKinsey figures. Online Community Building At the same time, the current model for physical retail also is not sustainable if stores serve as simply fulfilment cen- ters for digital transactions. For years, we have heard how brick-and-mortar retailers must offer value-added ser- vices and unique customer experiences in order to prevent becoming simply “transactional venues” for product brands. This is the area in which an out- door specialty store’s local online reach may prove most important. For most outdoor shops, the added- value of the in-store experience comes in the form of product and activity expertise, a product discovery process enabled by a unique curated selection, knowledgeable and likeable floor staff and, perhaps most important, a community in which custom- ers come to identity themselves. In other words, walking into a paddling shop and associating with paddlesports experts reinforces one’s self-perception of being a “paddler” or an “outdoor enthusiast.” It is precisely these types of experi- ences that physical specialty retailers will need to move to online and social channels if they have any intention of maintaining value in the eyes of consum- ers who might also continue to value contactless shopping and social distanc- ing. This strategy could include personal online shopping advisors, digital video product demonstrations or line show- ings, online meet-ups, real-time foot traffic updates posted online or via web cams, and a tighter integration between online catalogs and on-hand inventory. “Retailers should invest in train- ing and equipping store associates to engage with customers online, so that store staff can guide customers at the start of the product-discovery journey and interact with them post-purchase,” suggested McKinsey analysts. “Retailers with a truly omnichannel mindset could also reward store associates for influ- encing online sales in local zip codes.” For most physical specialty retailers, letting any customers slip away during the recovery is simply not an option. Let’s face it, the need to limit custom- ers through the door or repurpose floor space for distancing will present significant challenges to a business model that partly measures success on sales per square foot and foot traffic per minute. Already, the market has seen how reduced foot traffic can lead to the shuttering of long-standing outdoor stores. And coming out of the pandemic lockdowns, we expect margin pressures to increase from every direction. Ultimately, if shopping behavior is permanently impacted and COVID-19 behaviors are, in fact, sticky, a physical store’s online capabilities and related local outreach become almost inherent to survival. If, on the other hand, things eventually return to the pre-pandemic normal, those same investments can be leveraged as part of a newly neces- sary business continuity plan. m