| "SHOPPING SPREES, COPPIN' FRANKIE B'S, BABY PLEASE, I STAYS WITH MAJOR CHEESE" |
In the Netherlands, we're currently witnessing a new wave of bankruptcies among established Dutch main street retail chains. Every time I read an article about about the death of one of these often soulless entities (no shots to the people just trying to make a living behind the counters ), I hear a familiar phrase in the back of my mind: fake news. Every article, and every person these articles quote, puts the blame on young consumer (mostly millennials, but also Gen Z’ers) and their alleged internet addictions. Those articles will have you believe that young consumers just don't like brick and mortar like stores, that they'd rather just order everything online, not caring about the effects it has on the local economy. They’re wrong. Let’s have a look at some numbers:
The first statistic couldn't be be clearer. Yes, it is about clothing, but based on other information out there, it applies to most things, especially if you keep the second statistic in mind. What we mean by that is that it is important that your store delivers an experience that makes young consumers feel good. And no, serving coffee isn't enough, although it certainly helps. As stores has to be authentic, the people working in it have to to feel good about what they are selling (people notice), and consumers need to feel like they can trust you. In the age of information overload, people are looking for curators, and brick and mortar stores are still perfect for that.
We have witnessed this in our home city, Apeldoorn. We arrived three years after the financial crisis of 2008, and the city center was visibly hurting. Since then however, more and more cool independent stores and authentic chains (which often grew out of single stores, which is always a great thing) have established themselves. They appear to be doing well, and if you ask me, they're doing well because they are delivering an experience that satisfy two core millennial cravings: the ability to align yourself with institutions, organizations and brands that feel like they authentically represent your values on a broader scale, and the need for personal relationships. We have seen the same in many other cities across the country (shoutout to the multiple record stores in Arnhem and Deventer defying the odds, we see you) and Europe.
Brick and mortar retail isn't dead. Bad retail chains that took our money because we didn't have alternatives are. Even if the small to medium term fallout of a collapsing retail chain can be dramatic, the future of retail looks bright.
One Love,
Marius | 1520