Why Physical Retail Still Matters

Brands have posed the existential question — what is physical retail — and are undertaking the ultimate reinvention

The word “commerce” is derived from the Latin word “commercium” — com meaning “together,” and “mercium” meaning “merchandise.” In many ways, its etymology is an astute illustration of its history, one that underscores the paradigm of traditional shopping malls, the familiar swarms of teenagers clutching Wetzel’s Pretzels, scurrying through Abercrombie and Fitch together. As droves of major retailers closed last year, including the ever-nostalgic Toys R Us, BCBG, and Radio Shack, journalists have warned of a contraction in the retail sector, dubbing it the “retail apocalypse.” However, a closer examination of our new reality reveals this prevailing narrative to be shortsighted. The story of retail isn’t over — the internet and evolving consumer preferences are only changing its course.

When shopping precincts first arose in the 1920’s, they were the shiny new “Main Streets” of America, the cultural epicenter of the region. They were conceived as community centers, where people could converge to buy and socialize. (Gruen & Smith, 1960). In them, traditional department stores provided immense value by bringing multiple labels and products under the same roof. Not only was this beneficial for the avid shopper, but also made the retail experience convenient and much less complex for the clueless consumer with no idea where to start…