The Resilient Retail Revolution: How Brick-and-Mortar Stores Are Fighting Back Against Online Giants
Forget the retail apocalypse. A new study reveals that physical stores aren’t just surviving – they’re poised to remain the preferred shopping destination for a significant majority of consumers. But thriving in this new landscape demands a radical shift in strategy, one that acknowledges the convenience of online shopping while doubling down on the unique experiences only brick-and-mortar can deliver.
The Staying Power of the In-Store Experience
The “Elevate Retail Design 2025” study, conducted by Holistic Consulting GmbH and supported by the Austrian Federal Economic Chamber (WKÖ), paints a surprisingly optimistic picture for traditional retail. Over 1,000 Austrian consumers were surveyed, echoing similar findings from recent studies in Germany and Switzerland. The core takeaway? Consumers still value the immediacy and sensory experience of shopping in person. They want to touch, test, and compare products before making a purchase – a need particularly strong in sectors like drugstore & beauty, where 76.3% of purchases still happen in physical stores.
While food retail leads the way with 85.3% of purchases occurring in-store, the textile sector is facing greater disruption, with only 45.9% of purchases happening offline. This highlights a crucial point: the level of disruption varies significantly by product category.
“The stationary trade lives,” says Markus Schweizer, CEO of Holistic Consulting and author of the study. “Consumers appreciate the immediate experience and the opportunity to see, grasp or compare products before buying.”
The Rise of ‘Retailtainment’ – And Why It’s Not Enough
Many retailers have attempted to combat online competition by focusing on “retailtainment” – adding entertainment elements to the shopping experience. However, the study suggests this isn’t a primary driver for consumers. Convenience, price-performance ratio, selection, and service remain paramount. While creating a positive atmosphere and clean, accessible city centers is vital, simply adding gimmicks won’t cut it.
Pro Tip: Focus on streamlining the shopping journey. Uncomplicated payment options, clear product displays, and knowledgeable staff are far more impactful than elaborate in-store events.
The Asian E-Commerce Threat: Temu, Shein, and the Need for Fair Play
The study also sheds light on the growing influence of Asian e-commerce platforms. Around 50% of Austrian respondents have purchased from platforms like Temu, Shein, and AliExpress. Temu, in particular, has seen explosive growth, jumping from 32% purchase frequency in the previous year to 60% this year. Shein’s growth is slower (18% to 26%), while AliExpress is actually losing ground (10% to 5%).
This rapid expansion is raising concerns about fair competition. Rainer Treelik, chairman of the Austrian Federal Economic Chamber, stresses the need for a level playing field. “Temu and Co are growing rapidly at the expense of domestic trading companies. We need effective measures in the area of customs, taxes, licenses, and product safety. It cannot be that only European companies have to fulfill countless requirements.”
Expert Insight: “The speed at which these platforms are gaining market share is alarming. European regulators need to act decisively to ensure fair competition and protect domestic businesses.” – Rainer Treelik, Chairman, Austrian Federal Economic Chamber.
Digital Integration: Beyond the Hype
While digital tools like POS order terminals and in-store navigation systems hold promise, the study reveals a cautious consumer response. Interest is high, but actual usage remains low. The key is to implement digital solutions that genuinely add value, rather than simply replicating online features in a physical space.
The study found a polarized response to more intrusive digital technologies. Subscriptions, chatbots, and personalized mobile messages were met with both enthusiasm and skepticism. Consumers value convenience, but they also prioritize privacy and control.
Did you know? Consumers are more receptive to digital tools that enhance the in-store experience, such as interactive displays providing product information or virtual try-on features.
The Future of City Centers: Walkability, Atmosphere, and Political Stability
Attracting shoppers back to city centers requires a holistic approach. The study emphasizes the importance of walkability, public transportation access, a positive atmosphere, and cleanliness. However, it also highlights a surprising factor: political stability. Protests and demonstrations can deter shoppers, impacting foot traffic and sales.
Creating vibrant, pedestrian-friendly city centers is crucial. This includes investing in public spaces, supporting local businesses, and ensuring a safe and welcoming environment.
Frequently Asked Questions
Q: Is brick-and-mortar retail really going to survive?
A: Absolutely. The study shows that consumers still prefer in-store shopping for many categories, particularly those where tactile experience is important. However, retailers need to adapt and focus on providing unique value.
Q: What’s the biggest threat to traditional retailers?
A: The rapid growth of Asian e-commerce platforms, coupled with a lack of fair competition in areas like customs and taxes, poses a significant challenge.
Q: What digital tools are most likely to succeed in a retail setting?
A: Those that enhance the in-store experience and provide genuine convenience, such as interactive displays, mobile payment options, and personalized recommendations.
Q: How important is the shopping environment?
A: Extremely important. A clean, safe, and accessible shopping environment is essential for attracting and retaining customers.
Looking Ahead: A Hybrid Future
The future of retail isn’t about choosing between online and offline – it’s about creating a seamless, hybrid experience. Retailers who can successfully integrate the convenience of digital with the sensory appeal of physical stores will be best positioned to thrive. This requires a deep understanding of consumer preferences, a willingness to embrace innovation, and a commitment to creating a truly compelling shopping experience. The resilient retail revolution is underway, and it’s being built on experience, convenience, and a fair playing field for all.
What are your predictions for the future of retail? Share your thoughts in the comments below!
