Short answer
Design physical retail spaces to be adaptable and integrated with digital channels, serving multiple functions like showrooms, pick-up points, and experiential zones, while carefully considering location strategy.
- Field
- Innovation & Markets
- Source
- Aaltodoc (Aalto University) (2015)
- Method
- Mixed-methods research (literature review, expert interviews, survey)
- Sample
- 23 experts (6 interviewed, 17 surveyed)
- Evidence
- Moderate effect
Brick-and-mortar stores will persist in multichannel retail by adapting into hybrid spaces that integrate online and offline functions, serving as showrooms, pick-up points, and transactional hubs. This innovation & markets research insight is drawn from a 2015 study published in Aaltodoc (Aalto University). Using Mixed-methods research (literature review, expert interviews, survey) with 23 experts (6 interviewed, 17 surveyed), researchers explored how this design variable affects real-world outcomes. The key design takeaway: Design physical retail spaces to be adaptable and integrated with digital channels, serving multiple functions like showrooms, pick-up points, and experiential zones, while carefully considering location strategy.
Physical Retail's Evolving Role in Multichannel Environments
Brick-and-mortar stores will persist in multichannel retail by adapting into hybrid spaces that integrate online and offline functions, serving as showrooms, pick-up points, and transactional hubs.
Aaltodoc (Aalto University) · 2015
Key Findings
- 01Physical stores retain unique advantages over online channels and will continue to exist.
- 02Stores are likely to evolve into hybrid spaces, combining showroom, pick-up, and transactional functions.
- 03Multichannel retail contributes to pressure for rationalizing store networks and can lead to a bipolarization of retail locations, favoring prime sites.
- 04Flexibility in retail space design and leasing agreements is becoming increasingly important.
Application
Design takeaway
Design physical retail spaces to be adaptable and integrated with digital channels, serving multiple functions like showrooms, pick-up points, and experiential zones, while carefully considering location strategy.
How to apply
When designing or redesigning a retail space, consider how it can serve as a seamless extension of an online presence, offering services like click-and-collect and interactive product displays.
Project actions
- 01Consider how your design can bridge the gap between online and offline customer journeys.
- 02Think about the different functions a physical space might need to serve in a modern retail context.
Method & Evidence
Variables
Strengths & Limitations
Strengths
- +Combines multiple research methods for a more robust understanding.
- +Focuses on a critical contemporary issue in retail.
Limitations
The findings are based on expert opinions and a limited survey sample, and the retail environment is constantly changing, so the exact future predicted might not fully materialize.
Reliability & validity
The use of multiple methods (literature, interviews, survey) enhances the validity of the findings. However, the low survey response rate may impact the generalizability and reliability of those specific results.
Think critically
To what extent will the 'experiential' aspect of physical retail become the primary driver for its continued existence, overshadowing transactional functions?
Design Principles
"Integrate physical and digital retail experiences to create hybrid spaces that leverage the unique strengths of each channel."
Understanding the evolving role of physical retail is crucial for designing effective omnichannel strategies. Retailers must consider how store design, location, and function need to adapt to complement digital channels, rather than being replaced by them.
What This Means for Your Design
Even with online shopping, real stores are still important. They are changing to be more than just places to buy things; they're becoming places to see products, pick up online orders, and have experiences, all while being connected to the internet.
How to use in your project
- 1.Reference this study when discussing the changing role of physical retail in your design project's context or when justifying the need for a hybrid approach.
- 2.Use the findings to support arguments about the continued relevance of physical spaces and their evolving functions.
Add to My Project
Quick Cite
Paragraph starter
The research by Mustakallio (2015) highlights that brick-and-mortar stores remain relevant in a multichannel retail landscape, evolving into hybrid spaces that integrate showrooms, pick-up points, and transactional functions. This suggests that physical retail design must prioritize adaptability and seamless integration with digital channels to meet contemporary consumer demands.
Source
Aaltodoc (Aalto University)
The future of the brick-and-mortar store in the world of multichannel retail
journal · 2015
View sourceQuestions About This Research
- What does the research say about physical retail's evolving role in multichannel environments?
- Design physical retail spaces to be adaptable and integrated with digital channels, serving multiple functions like showrooms, pick-up points, and experiential zones, while carefully considering location strategy. Evidence: Aaltodoc (Aalto University) (2015).
- Why does "Physical Retail's Evolving Role in Multichannel Environments" matter for design?
- Understanding the evolving role of physical retail is crucial for designing effective omnichannel strategies. Retailers must consider how store design, location, and function need to adapt to complement digital channels, rather than being replaced by them.
- How can designers apply this research?
- Design physical retail spaces to be adaptable and integrated with digital channels, serving multiple functions like showrooms, pick-up points, and experiential zones, while carefully considering location strategy.
- What were the main findings?
- Physical stores retain unique advantages over online channels and will continue to exist.. Stores are likely to evolve into hybrid spaces, combining showroom, pick-up, and transactional functions.. Multichannel retail contributes to pressure for rationalizing store networks and can lead to a bipolarization of retail locations, favoring prime sites.. Flexibility in retail space design and leasing agreements is becoming increasingly important.
- What research method was used?
- Mixed-methods research (literature review, expert interviews, survey) with 23 experts (6 interviewed, 17 surveyed).
- How strong is the evidence?
- Evidence strength is rated Moderate effect, based on a 2015 journal from Aaltodoc (Aalto University).
- What should I do differently in my next project?
- When designing or redesigning a retail space, consider how it can serve as a seamless extension of an online presence, offering services like click-and-collect and interactive product displays.
- What are the limitations?
- The survey response rate was low (17%), potentially limiting the generalizability of quantitative findings. The research was conducted in 2015, and the retail landscape has continued to evolve rapidly since then.