Is this the end of shopping malls?

With Amazon expected to surpass Macy's to become the biggest apparel seller in the US next year, many people are wondering what this means for the world of fashion?

In recent years, the consumer's increasing desire to shop online has certainly forced brands to invest in their digital ecosystems. However, brick and mortar has managed to co-exist, if not tentatively, with online platforms. But is this indicative of a future without shopping malls? 

Indeed, the shift would represent a huge shake-up for the apparel industry, which has long been dominated by department stores like Macy's, JCPenney, and Walmart. 

There are also signs that Amazon want to enter the world of high fashion. The company has started to shift its fashion strategy toward offering more high-end designer names such as Zac Posen and Stuart Weitzman. To help with this new strategy, they have even hired executives from luxury fashion companies such as the Vogue editor Caroline Palmer.

Given the close ties and similarities between the UK and US, there is some speculation over whether we could see this happen in the UK. But I don't think it is all doom and gloom for the highstreet - well, in the UK at least!

Brands in the UK simply need to play to their strengths, instead of trying to compete in the digital space where Amazon is a founding father.

This is not to say they should abandon their digital stores - a good online UX experience can be just as effective as a good marketing campaign  - but they should focus on offering what online retail can not - the human touch.

Simple enough idea - but there are not enough brands doing it.

Validation of one’s fashion choses is still important. More than 65% of 16-34s “don’t make a fashion decision until they have discussed it with people they trust,” and 70% are “more excited about a decision they’ve made when their friends agree with them.” (Forbes, 2015)

Their desire for affirmation is so great that we have even seen the rise of "chelifies."  Shoppers are now asking friends from the changing room for their opinions on new outfits via social media. A survey of 2,000 young people found they can wait up to 2 hours to acquire 'likes' before buying an outfit. (Daily Mail, 2015)

But there’s a tension - they’d prefer it if their mates were really there. Females aged between 16-34 want shopping to be a group activity and shop twice as often with their spouses, friends or family members compared with non-millennial women. Indeed, 59% of 16-34s say they prefer shopping in-store for clothing, fashion, and accessories. (YouGov Reports, 2016, Innovations in Retailing)

"Whilst online shopping is becoming ever-more convenient with the advent of within the hour and same day deliveries, it is clear that the desire to touch, feel, try on, compare, and above all see and judge, clothes/accessories when worn remains strong.”
(YouGov Reports, 2016, Innovations in Retailing).

These young women also want a better "experience". When shopping, they prefer an ‘experiential’ retail environment, where shopping is more than a transaction and the pleasure of being in the store isn’t limited to the goods that customers take home.” (Forbes, 2015)

Based on these insights, brands on the high street need to recognise their customers desire for great in-store retail experiences. They need to transform retail spaces into social spaces. The ultimate goal is to give their consumers such a brilliant in-store experience, that they will feel they are not getting the full product if they just shop online.