162 Whilst it may seem like online shopping has become more prevalent than ever in recent years, a large portion of the population still rely on traditional brick-andmortar retailers. For example, the online share of total retail trade in 2023 was 26.7 per cent in the UK (according to the Office for National Statistics), 15 per cent in the USA (US Census Bureau) and an average of 15 per cent across the European Union (Centre for Retail Research). However, these figures are gradually rising, due to a growing number of e-commerce outlets, availability in more rural areas and increased awareness of the benefits to online shopping, such as convenience to product choice. Consequently, retailers must focus on evolving their physical stores to introduce new appeal for customers and keep them coming back. According to Shanthi Rajagopalan, senior director and global head of strategy for worldwide retail and consumer goods at Microsoft, physical stores have the potential to become “microfulfilment and experience centres that provide opportunities for customers to browse, discover and try products, whilst developing a very effective advertising surface.” To unlock this value and maintain a dedicated customer base, retailers first need to ask the question: what do consumers seek from a positive in-store experience? “Customers want stores to be clean, well-lit and well-merchandised,” says Rajagopalan. “They want products to be easy to find and available for purchase, and they expect to be able to checkout and pay with as little friction as possible.” In addition, says Rajagopalan, customers visiting physical stores wish to have unique BY AMBER HICKMAN The traditional storefront still holds value for shoppers, but retailers must examine how technologies like AI can take the in-store experience to the next level to ensure they remain relevant as e-commerce continues to grow. Microsoft’s Shanthi Rajagopalan discusses FEATURE Adapting thrive to Photo: iStock/MMassel
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