University at Buffalo School of Management

Spring 2018 Buffalo Business 15 "There is a growing emphasis on omnichannel retailing, where retailers provide a seamless expe- rience for shoppers between their online and brick- and-mortar personas," says Alan Dick, associate professor and chair of the Marketing Department. "Transparent integration of the in-store environ- ment, well-designed websites and social media are paramount." adapt and survive As hundreds of empty suburban malls litter the landscape, high-profile chains like Circuit City shut- ter their doors and competition shakes up the gro- cery industry, brick-and-mortar stores, malls and supermarkets will have to adapt to shiing consum- er attitudes and shopping behavior. At Tops, Persons says shoppers are increasing- ly interested in food solutions rather than buying ingredients, so the company is focused on offering high-quality prepared meals. They're also on the verge of launching delivery service, as well as a "click and collect" online shopping platform customers can use to buy online and pick up in their nearest store. "Some people will always want to go to the store, some will want to buy entirely online and some will want to buy their dry groceries online but get perish- ables in store," says Persons. "So in the future we'll still have supermarkets, just likely fewer of them." Best Buy has made electronics manufacturers its customers. Companies like Samsung, Apple and Microso pay Best Buy for existing retail space and avoid the expense of building their own stores. In addition, retailers will continue to get more creative about direct marketing. Gutmann says Nordstrom is heavily investing in advertising tech- nology that allows them to deliver relevant, person- alized experiences and marketing to its customers. "It's a marketer's dream to put the right message in front of the right person at the right time, and we are doing just that," says Gutmann. "Our investments in adver- tising technology and focus on personalization enable us to serve the custom- er in a more relevant and timely fashion than ever before." Looking ahead, ex- perts say the future holds additional store clos- ings and a greater conver- gence of online and offline shopping, and when new stores do open, they'll be smaller and offer more experiences. "This is an exciting and challenging time to be involved in retail," says Dick. "The retailers that best embrace change, rather than trying to just do what they have always done, will be the ones that survive." x " While brick-and-mortar stores provide customers the opportunity to touch and feel fashion and experience personalized services, the digital experience offers customers more selection and flexibility to browse on their own time. We find customers really want and use both." Turner gutmann, MBa '12 Program Manager in Marketing Analytics Nordstrom

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