Where is the future of retail?
Any technological revolution will lead to a retail revolution, in terms of consumers, shopping habits and much more.
Remember the good ole days when you’d just pop in the Virgin Megastore in Union Square to buy the latest Nirvana CD or the latest Will Smith movie on DVD.
Now the Virgin Megastore in Union Square has closed its doors. Why? There is nobody in particular to blame. People started consuming music and movies in a different way several years ago. Downloads on internet have enabled instant consumption. One of the best examples is iTunes along with other services. A technological revolution has led to a retail revolution, people do not need to go to a store anymore, they can buy music, movies, TV shows on the go, anywhere, anytime.
The same applies for movie rentals. When was the last time you actually physically went to rent a movie at a Blockbusters or somewhere else. The likes of Netflix, with movies now available in streaming at home or on your iPad, have also enabled instant consumption anywhere, at any time with no hassle.
Innovations in the digital media field have changed the way people use the very same media. Examples abound from defunct photography shops to game stores and much more…
Some of the retailers that require physical interaction with their products do not have to worry… that much…
Fresh Direct as brought change to cities by helping people shop in a different way through their online platform. They set standards to manage the virtual (the ordering process) with the real word (fresh products and delivery process of physical elements) with refunds and return policies. Residential buildings in New York are adapting by offering amenities like cold storage rooms for food deliveries. Your food can be delivered at any time, stored and ready for you to pick it up when you come home. Ask yourself why should you commute to the mall when this very service is so convenient?
You might think clothing is safe. Well, kind of… In New York, http://www.mysuitny.com is offering you an in between solution mixing on line experience (select a suit, customize it, etc.) with on site experience (measuring, fabric choices…)
The newest smart phones have image recognition software. Take a picture of an object you would like to buy. The phone will recognize it for you, tell you where you can buy it, and perhaps if you don’t want to commute to the store, it might suggests an online retailer. It happened with digital media. I strongly believe that it can happen with so many other products.
With gas prices affecting the way we commute, malls are prone to suffer. As tele-commuting has brought a revolution to the way we work, the retail sector is on the verge of changing also.
Peter Videv is a Commercial Real Estate Advisor with Sperry Van Ness
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