Embracing New Concepts vs the Return to Brick-and-Mortar

Original source: https://retailistmag.com/embracing-new-concepts-vs-the-return-to-brick-and-mortar/

By Amber Hovious, VP of Marketing and Partnerships, Teamwork Commerce

The rapid rise of e-commerce and omnichannel shopping has transformed the shopping
experience, proving more convenient and offering choice. However, now we are
experiencing a shift where retailers are returning to physical stores, with some online
only brands opening brick-and-mortar locations for the first time. Brands that initially
started with an online presence are increasingly investing in brick-and-mortar stores,
recognising the importance and value of in-person experiences and human connection.

The role of the store is evolving, not disappearing. Retailers and established brands are
embracing physical stores to offer customers immersive and memorable experiences
that purely digital platforms often struggle to replicate. Physical stores foster customer
loyalty, strengthen brand reputation and cater to today’s consumer needs for authentic,
human-to-human interactions.

However, to thrive and promote business growth, retailers must embrace innovation.
Balancing the return to physical retail and the development of new technologies to
enhance customer experience and drive operational efficiency for long-term success.
In this article, Amber Hovious, VP of Marketing and Partnerships at Teamwork
Commerce, will explore how retailers can successfully integrate new concepts whilst
benefiting from the return to physical retail. She can discuss:

Why physical spaces still matter

Despite the accelerated shift to e-commerce, the physical store remains a cornerstone
of retail strategy. Physical environments create a sensory and emotional connection that
digital interfaces cannot replicate – a place where shoppers can feel, touch, and
experience products in context. Importantly, physical stores can foster human
connection – the kind that builds loyalty and trust in a way that algorithms alone cannot.

Retailers must focus on reimagining what their stores can become: a brand experience
centre, a fulfilment hub, and a data-rich engagement point all at once. Hybrid models
such as Buy Online, Pick Up In Store (BOPIS) and Buy Online, Return In Store (BORIS)
bridge the convenience of digital with the immediacy of in-person service. These models
are operationally efficient as well as consumer engagement drivers, offering choice,
flexibility, and instant gratification – factors that drive consumer loyalty.

New retail technologies are becoming a game-changer

Implementing new technologies into physical stores drives consumer engagement and
delivers more personalised, engaging shopping journeys. Technology-driven shopping
experiences and pop-up retail are becoming powerful tools to test and learn what
stimulates consumer interest.

From AI-driven personalisation engines to augmented reality (AR) try-ons and
cashierless checkout systems, innovative tools are changing the way consumers interact
with retailers. Computer vision, RFID tagging, and IoT-powered analytics allow brands
to understand shopper behaviour in real time and adjust layouts, promotions, and
inventory dynamically.

Pop-up retail formats, powered by modular store technology and mobile POS, are
becoming increasingly popular. Brands can pilot new experiences, analyse performance,
and scale what works – without the overhead of permanent footprints. Retailers should
translate technological investment into frictionless, high-value experiences that make
shopping feel personal, effortless, and rewarding.

Blending innovation with tradition

The future of retail is not a choice between digital and physical, but the intelligent
integration of both. It’s important to combine both new innovative methods with
traditional concepts in physical stores to maximise sales and drive growth. Brands
should combine legacy retail strengths such as human service, sensory experience, and
brand storytelling with digital insights and omnichannel agility.

Retailers who can maintain this balance will not only increase conversions but also create a unified customer journey across touchpoints. Predictive analytics can inform product placement and staffing decisions; mobile engagement tools can extend relationships beyond the store visit. All this also helps brands use data to make highly informed decisions.

Tech-enhanced store formats

More retailers are returning to physical retail, making it crucial to explore the most
effective ways to attract and retain consumers. One of the key drivers of advanced
physical stores isn’t intuition, it’s intelligence. Data-driven layouts, guided by heat maps
and behavioural analytics, are optimising traffic flow and dwell time. RFID-enabled fitting rooms and smart mirrors create seamless product discovery while providing retailers with instant feedback on preferences and stock movement.

Meanwhile, advanced mobile POS systems can empower associates to serve customers
and complete transactions from anywhere in a store, allowing them to access customer
profiles, order history, and inventory in real time. As a result, staff can tailor customer
interactions more efficiently with all the data at their fingertips.

As more retailers return to physical retail to strengthen brand visibility and customer
trust, the emphasis must shift from transactions to transformation. Retailers shouldn’t
use tech to replace humans but deploy it as a strategic enabler of human-centric
experiences. This can help them make consumers feel recognised, valued, and inspired
to return.

In the new retail landscape, the measure of success is no longer footfall or click-through
rates – it’s engagement, trust, and loyalty. Retailers who cater to these values will stand
out in the near future.