Fashion retailers must alter the shopping experience in several specific ways to kick start productivity and recapture lost value.
As online sales increase and more shoppers are doing a greater amount of their purchasing online, performance at physical stores is suffering. While the number of stores may be still be increasing among best-practice retailers, overall productivity per store is stagnating—or declining. (Stores are even under pressure in the apparel segment, where 85% of clothes are still bought in stores.) To meet this challenge, stores may have to be re-imagined to create richer shopping experiences that reflect their customers' needs and shopping preferences.
Here are some lessons learned from BCG's work with women’s fashion retailers: