Expand your product lines in a virtual, immersive and efficient way

A recent UBS report published a few weeks ago and echoed by many sites, announces that 75,000 stores will close by 2026 in the US. This figure is exceptional because it goes far beyond the levels of closures seen in previous years. UBS reports a very strong decline in specific sectors such as apparel, white goods and home furnishings stores.

So how do you expand your product lines outside the usual retail space? IKEA and Darty have certainly already anticipated this trend by trying to reinvest in city centers as we said in one of our previous articles.

E-commerce: the big bad wolf

The forecasted growth of online shopping is increasing every year, until it represents 25% of sales by 2026 (compared to 16% currently). In fact, the average American consumer spends $5200/year online, which is 50% more than 5 years ago. The causal link between the reduction of retail space and the increase in online commerce is obvious. But the explanation would be too simplistic.

Pure e-commerce players are going against the grain. In the USA, the furniture retailer Wayfair and the mattress brand Casper are opening points of sale. Amazon also opens points of sale, and its ambition is not to be taken lightly, there is talk of 3,000 stores by 2021! Closer to home, Made.com, the furniture specialist, has also opened showrooms in Paris and Antwerp, confirming the trend.

The point of sale becomes a showroom

Some see this as nothing more or less than a market cleansing phenomenon. Analyst John D. Morris (D.A. Davidson) believes that "retailers have held on to their physical stores for too long. Customer expectations have evolved.

"Less is more" : the trend is towards streamlined stores, less chaos, less choice, more visibility. Indeed, the brands that survive are those that will listen to their customers and reinvent themselves. If the customer wants a product in blue, and in a different size, he can go online.

How to manage expandable ranges, streamlined sales outlets, and smaller surfaces?

The solution at Retail VR is to digitalize your offer. So we offer tools to help you extend your in-store ranges, virtually, immersively and effectively. Want to know more about virtual reality? Download the free white paper "The contribution of 3D in retail".