{"id":4125,"date":"2018-03-21T12:33:53","date_gmt":"2018-03-21T12:33:53","guid":{"rendered":"https:\/\/www.walkme.com\/blog\/?p=4125"},"modified":"2023-05-02T15:42:53","modified_gmt":"2023-05-02T15:42:53","slug":"digital-retail-revolution","status":"publish","type":"post","link":"https:\/\/www.walkme.com\/blog\/digital-retail-revolution\/","title":{"rendered":"The Digital Retail Revolution: What All CEOs Should Know"},"content":{"rendered":"I remember the joy I felt as a child whenever my parents announced we were going to Toys R Us.\n\nI could hardly control my excitement, squirming against the seatbelt as my dad drove us to the store in the family minivan. I can still recall the thrill of sneaking away from my mom so I could run through the aisles unconstrained by the \u201cyou can pick one toy\u201d rule.\n\nThe demise of Toys R Us, once the dominant U.S. toy seller, marks the end of an era.\n\n<img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-4128 size-full\" src=\"https:\/\/www.walkme.com\/blog\/wp-content\/uploads\/sites\/2\/2018\/03\/shutterstock_579439177-1.jpg\" alt=\"retail apocalypse \" width=\"1000\" height=\"667\" srcset=\"https:\/\/www.walkme.com\/blog\/wp-content\/uploads\/sites\/2\/2018\/03\/shutterstock_579439177-1.jpg 1000w, https:\/\/www.walkme.com\/blog\/wp-content\/uploads\/sites\/2\/2018\/03\/shutterstock_579439177-1.jpg?resize=300,200 300w, https:\/\/www.walkme.com\/blog\/wp-content\/uploads\/sites\/2\/2018\/03\/shutterstock_579439177-1.jpg?resize=600,400 600w\" sizes=\"auto, (max-width: 1000px) 100vw, 1000px\" \/>\n<h2>Same story, different franchise<\/h2>\nThe news that Toys R Us <a href=\"http:\/\/www.businessinsider.com\/why-toys-r-us-is-closing-stores-2018-3\" target=\"_blank\" rel=\"noopener\">filed a motion<\/a> to liquidate its business and shutter its 735 remaining stores is just the latest in the U.S. retail apocalypse.\n\nIt follows the closure of 1,430 Radio Shack locations, 808 Payless stores, 220 of HHGregg, and 238 Kmarts.\n\n<strong>Total closures in the U.S. exceeded 8,000 in 2017, according to <a href=\"http:\/\/www.businessinsider.com\/list-stores-that-closed-this-year-2017-12\" target=\"_blank\" rel=\"noopener\"><em>Business Insider<\/em><\/a>.<\/strong>\n\nThis is more than triple the 2,056 stores that <a href=\"https:\/\/research-doc.credit-suisse.com\/docView?language=ENG&amp;format=PDF&amp;sourceid=csplusresearchcp&amp;document_id=1073325671&amp;serialid=EyVXtoz87yovWNNAvcZfsquqOSSytpm8w1T1EClqtRo%3D\" target=\"_blank\" rel=\"noopener\">closed<\/a> in 2016. A whopping 5,077 closed in 2015. Analysts say the closures are <a href=\"https:\/\/www.bloomberg.com\/graphics\/2017-retail-debt\/\" target=\"_blank\" rel=\"noopener\">primarily due to unpayable debt<\/a> from buyouts by private equity firms.\n\nAnother significant factor is rising competition from online retailers.\n\n<strong>As digital retail giants like Amazon capture more and more market share, companies that resisted digital transformation began to drop.<\/strong>\n<h3 style=\"text-align: center;\"><a href=\"https:\/\/www.walkme.com\/pages\/digital-transformation-2\/?eco=digitaltr&amp;adin=dt-digital-retail-revolution-ll01&amp;land=digital-transformation-2&amp;pitch=Customer-Care\" target=\"_blank\" rel=\"noopener\">Don&#8217;t let your digital transformation effort fail. Discover how WalkMe instantly simplifies the process.<\/a><\/h3>\n<h2>Consumer demands are shifting<\/h2>\n<img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-4129\" src=\"https:\/\/www.walkme.com\/blog\/wp-content\/uploads\/sites\/2\/2018\/03\/shutterstock_631362125-1.jpg\" alt=\"digital retailer\" width=\"1000\" height=\"667\" srcset=\"https:\/\/www.walkme.com\/blog\/wp-content\/uploads\/sites\/2\/2018\/03\/shutterstock_631362125-1.jpg 1000w, https:\/\/www.walkme.com\/blog\/wp-content\/uploads\/sites\/2\/2018\/03\/shutterstock_631362125-1.jpg?resize=300,200 300w, https:\/\/www.walkme.com\/blog\/wp-content\/uploads\/sites\/2\/2018\/03\/shutterstock_631362125-1.jpg?resize=600,400 600w\" sizes=\"auto, (max-width: 1000px) 100vw, 1000px\" \/>\n\nConsumers no longer think of shopping as online or offline.\n\nThey want one, seamless experience that combines the best elements of both. While <a href=\"https:\/\/www.walkme.com\/blog\/strategy-business-agility\/\" target=\"_blank\" rel=\"noopener\">agile companies<\/a> adopted digital strategies early on, those that clung to their traditional business models are on the verge of extinction, if they\u2019re not already dead.\n\nIt\u2019s now obvious that a digital strategy isn&#8217;t only critical for success, but for survival.\n<h2>A digital transformation primer for retailers<\/h2>\nAt this point, many leaders of retail companies have put digital transformation at the top of their to-do list.\n\nBut important questions remain:\n<ol>\n \t<li>Is it even possible to embark on digital transformation this late in the game?<\/li>\n \t<li>How can big box retailers adopt digital retail strategy with their massive storefronts and thousands of employees?<\/li>\n<\/ol>\nThe answer to the first question is yes. Digital transformation is not only possible, it\u2019s a must.\n\nThe answer to the second question is a little more complicated.\n<h2>Retailers have no choice but to go digital, and other industries should take note<\/h2>\n<img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-4130\" src=\"https:\/\/www.walkme.com\/blog\/wp-content\/uploads\/sites\/2\/2018\/03\/shutterstock_530222965-1.jpg\" alt=\"digital retail strategy\" width=\"1000\" height=\"702\" srcset=\"https:\/\/www.walkme.com\/blog\/wp-content\/uploads\/sites\/2\/2018\/03\/shutterstock_530222965-1.jpg 1000w, https:\/\/www.walkme.com\/blog\/wp-content\/uploads\/sites\/2\/2018\/03\/shutterstock_530222965-1.jpg?resize=300,211 300w\" sizes=\"auto, (max-width: 1000px) 100vw, 1000px\" \/>Most businesses will struggle to meet consumers\u2019 expectations for <strong>convenience, immediacy, and personalization<\/strong> without a powerful online presence.\n\nThe demise of many retailers should be a warning to company executives in all industries. Consumers expect access to digital tools in banking, healthcare, education \u2014 you name it. Companies that fail to provide these things will quickly lose out to the competition.\n<h3>When creating a digital retail strategy, leaders must account for existing brick and mortar stores.<\/h3>\nFor many, declining foot traffic and lower in-store sales might necessitate closing some locations.\n\nBut done correctly, companies can integrate their digital retail strategy into the in-store experience.\n<h2>Case study: Walgreens<\/h2>\nWalgreens is a prime example. The pharmacy chain, founded in 1901, operates 8,100 stores in all 50 states, Puerto Rico, Washington, D.C., and the U.S. Virgin Islands.\n\nWalgreens\u2019 digital transformation effort is anchored by three core goals, which can be applied to any business:\n<ul>\n \t<li style=\"list-style-type: none;\">\n<ul>\n \t<li>Bridge the gap between the physical and digital experience<\/li>\n \t<li>Improve customer-centricity and personalization<\/li>\n \t<li>Better integrate technology to improve the overall customer experience<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2>The customer experience drives digital innovation<\/h2>\nThe <a href=\"https:\/\/www.walkme.com\/blog\/customer-service-statistics\/\" target=\"_blank\" rel=\"noopener\">customer experience<\/a> is central to every change the company has introduced, Deepika Pandey, chief digital marketing officer of Walgreens, <a href=\"https:\/\/www.thinkwithgoogle.com\/consumer-insights\/walgreens-digital-marketing-customer-experiences\/\" target=\"_blank\" rel=\"noopener\">wrote<\/a> for Think With Google.\n\nFor example, Walgreens\u00a0wanted to replicate the personal relationships customers have with their pharmacists online. With Pharmacy Chat, customers can talk to pharmacists through its website or mobile app at any time and from anywhere.\n<h2>The key is integrating the digital with the physical<\/h2>\nThe company also wanted to use technology to improve the in-store experience, according to Pandey.\n\nTo help customers choose the best product for them, Walgreens partnered with WebMD to create Relief Advisor. After answering a few questions, the digital advisor recommends products to best meet customers\u2019 specific needs.\n\nWalgreens linked its loyalty program with Android Pay to make the checkout process smoother. This allows customers to save digital coupons and apply their loyalty points when they make purchases through their phone.\n\nThe response has been positive.\n<blockquote class=\"twitter-tweet\" data-lang=\"en\">\n<p dir=\"ltr\" lang=\"en\">OMG. Android Pay worked so AWESOME at Walgreens. Started Android Pay app, touched the machine, heard the tone and DONE! <a href=\"https:\/\/twitter.com\/hashtag\/androidpay?src=hash&amp;ref_src=twsrc%5Etfw\">#androidpay<\/a><\/p>\n\u2014 Jeff Hensel (@henselj) <a href=\"https:\/\/twitter.com\/henselj\/status\/649381381672300545?ref_src=twsrc%5Etfw\">October 1, 2015<\/a><\/blockquote>\n<script async=\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<blockquote class=\"twitter-tweet\" data-lang=\"en\">\n<p dir=\"ltr\" lang=\"en\">That&#8217;s why I stick to <a href=\"https:\/\/twitter.com\/Walgreens?ref_src=twsrc%5Etfw\">@Walgreens<\/a>. I can use Android Pay on my watch. Frictionless purchase experience.<\/p>\n\u2014 Kiran J. Holla (@kiranjholla) <a href=\"https:\/\/twitter.com\/kiranjholla\/status\/947518049334321152?ref_src=twsrc%5Etfw\">December 31, 2017<\/a><\/blockquote>\n<script async=\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<blockquote class=\"twitter-tweet\" data-lang=\"en\">\n<p dir=\"ltr\" lang=\"en\">I can get used to this Android Pay&#8230;. no money, pay with phone&#8230;. \u2014 feeling excited at Walgreens <a href=\"https:\/\/t.co\/oSKXo4usez\">https:\/\/t.co\/oSKXo4usez<\/a><\/p>\n\u2014 Devinicole1 (@Haley78) <a href=\"https:\/\/twitter.com\/Haley78\/status\/864530069703843840?ref_src=twsrc%5Etfw\">May 16, 2017<\/a><\/blockquote>\n<script async=\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n\nWalgreens&#8217; innovation efforts are <strong>consumer-led.<\/strong>\u00a0Pandey says the company routinely invites customers to its facilities to provide direct insight about the kinds of services they want.\n\n<strong>The company then looks for ways to remedy customer pain points with technology.<\/strong>\n<h2>Walgreens\u2019 digital transformation efforts are paying off<\/h2>\n<img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-4131\" src=\"https:\/\/www.walkme.com\/blog\/wp-content\/uploads\/sites\/2\/2018\/03\/shutterstock_703261018-1.jpg\" alt=\"Walgreens\" width=\"1000\" height=\"667\" srcset=\"https:\/\/www.walkme.com\/blog\/wp-content\/uploads\/sites\/2\/2018\/03\/shutterstock_703261018-1.jpg 1000w, https:\/\/www.walkme.com\/blog\/wp-content\/uploads\/sites\/2\/2018\/03\/shutterstock_703261018-1.jpg?resize=300,200 300w, https:\/\/www.walkme.com\/blog\/wp-content\/uploads\/sites\/2\/2018\/03\/shutterstock_703261018-1.jpg?resize=600,400 600w\" sizes=\"auto, (max-width: 1000px) 100vw, 1000px\" \/>\n\nWalgreens\u2019 total pharmacy sales are up 14.1%, surpassing 1 billion prescriptions for the first time,<a href=\"https:\/\/risnews.com\/walgreens-sees-pharmacy-sales-soar-thanks-digital-transformation\" target=\"_blank\" rel=\"noopener\"><em> Retail Info Systems<\/em><\/a> reported.\n\nEngagement with Walgreen\u2019s digital channels is growing. More than 20% of its retail prescriptions were ordered digitally during the first quarter of 2018.\n\nThe company\u2019s mobile app has exceeded 50 million downloads, and it boasts a 5-star customer rating in the U.S. Apple App store, according to the report.\n<h2>The moral of the story<\/h2>\n<strong>The success of Walgreens\u2019 transformation shows that creating an effective digital retail strategy requires more than just launching a website or app, though these things are essential.<\/strong>\n\nIt\u2019s about using technology to bring greater value to customers and improve their overall experience.\n\nThe same rules apply for companies in other industries. Patients don\u2019t only want to pay their medical bills online. They want the ability to ask healthcare professionals questions at any time, day or night. Bank customers don\u2019t just want to deposit a check through their smartphone. They want personalized investment recommendations and alerts when there is a change to their account.\n\nMany forces are driving the retail apocalypse and challenging other industries. But with the right digital strategy, companies can increase their resilience, and even thrive.\n<h3 style=\"text-align: center;\"><a href=\"https:\/\/www.walkme.com\/pages\/cx-corporate-1-achieve-best-customer-experience\/?eco=digitaltr&amp;adin=dt-digital-retail-revolution-ll02&amp;land=cx-corporate-1-achieve-best-customer-experience&amp;pitch=Customer-Care\" target=\"_blank\" rel=\"noopener\">Find out how WalkMe instantly boosts the customer experience.<\/a><\/h3>","protected":false},"excerpt":{"rendered":"I remember the joy I felt as a child whenever my parents announced we were going to Toys R Us.<span class=\"moretag\">&#8230;<\/span>","protected":false},"author":246,"featured_media":4126,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"mobile_image_id":0,"tablet_image_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[89],"tags":[209,210,153],"class_list":["post-4125","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-digital-transformation","tag-digital-retail","tag-digital-strategy","tag-wmb-dt"],"acf":{"__coauthors":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>The Digital Retail Revolution: What All CEOs Should Know - WalkMe Blog<\/title>\n<meta name=\"description\" content=\"The retail apocalypse is real. 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