{"id":5725,"date":"2025-02-26T20:07:59","date_gmt":"2025-02-26T20:07:59","guid":{"rendered":"https:\/\/leap.staging.ribbitt.com\/leap-group\/?p=5725"},"modified":"2025-02-27T17:12:05","modified_gmt":"2025-02-27T17:12:05","slug":"leadership-lens-how-brands-are-staying-relevant-in-the-retail-shift","status":"publish","type":"post","link":"https:\/\/leap.staging.ribbitt.com\/leap-group\/leadership-lens-how-brands-are-staying-relevant-in-the-retail-shift\/","title":{"rendered":"Leadership Lens: How Brands Are Staying Relevant in the Retail Shift"},"content":{"rendered":"\t\t
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Leadership Lens is a series in which we feature Leap Group leaders discussing industry trends, shifting landscapes, and other topics crucial to brand relevance.<\/p>

There\u2019s no question that digital continues to dominate the retail landscape: the global e-commerce market is expected to total $4.8 trillion<\/a> this year, with online sales expected to account for 23% of total retail sales by 2027. Yet at the same time, a surprising counter-trend is emerging: a resurgence of brick-and-mortar retail. Brands like Barnes & Noble are defying expectations by expanding their physical footprint (the bookseller is set to open 60 new stores this year<\/a>, after opening nearly as many in 2024), while digital-first companies are exploring in-person experiences to build deeper consumer connections.<\/span><\/p>

In this installment of Leadership Lens, we sat down with Alan Gilleo, Co-Founder and CMO<\/strong>, and Walter Harris, VP of Client Services,<\/strong> to discuss the evolving dynamics between online and offline retail, the psychological and cultural factors driving this shift, and how brands can strategically navigate a hybrid future. From hyper-local store curation to digital-first marketing approaches that foster meaningful engagement, they share insights on what it takes to stay relevant in an ever-changing retail environment.<\/span><\/p>

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What changes have you observed with your clients in terms of marketing strategy and brand experience as they navigate these shifting trends between brick-and-mortar retail and e-commerce?<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Walter:<\/strong> I think what\u2019s interesting\u2014even exciting\u2014about this shift is seeing some established online players flirting with the idea of returning to brick-and-mortar. For decades, the trend has been that once a brand or category moves away from physical retail, they don\u2019t go back. Businesses adjust their model, reshape their marketing, and make difficult operational changes and consumers adapt to that shift. Reversing course seemed counter to good business and consumer preference.<\/p>

Think about the move to online banking. There was a time when banks opened branches near every new subdivision. Consumers wanted a physical bank nearby so brick and mortar proximity to customers was prioritized. The advent of online banking had the category scrambling to exit physical locations, all driven by consumer behavior. Banks had to reinvent themselves as digital-first entities. People simply stopped visiting branches because smart phones put banks in their back pocket. The proliferation of fintech only accelerated this trend. Fast forward to 2023 and for the first time in a decade, banks in the US opened more stores than they closed. It may be too early to call it a comeback, but you have to wonder if Capital One is onto something by enhancing their branch experience with consumer-driven amenities like cafes and free Wi-Fi.<\/p>

We all witnessed bookstore giants like Barnes & Noble tumble with the emergence of e-readers and Amazon. The expectation was for large bookstore chains to go the way of Blockbuster. But now, there\u2019s an interesting resurgence in physical media. Vinyl records came back and now have a presence at retail that CDs can only dream of. But don\u2019t count out CDs because Gen Z and teens with old souls are visiting thrift stores to build physical collections. Maybe Barnes & Noble is tapping into a growing desire for tangible experiences and physical collectibles. Remember, bookstores used to offer more than just books\u2014you could get a coffee, browse magazines, read the first few chapters of a book, and even meet other like-minded readers. There was a culture to it, an experience that got lost in the digital transition. It will be interesting to watch and see if Barnes & Noble can reclaim that \u201ccultural, human connectivity\u201d space.<\/p>

Alan:<\/strong> There\u2019s a psychological aspect to all of this\u2014research shows that humans need tactile experiences to feel grounded and connected. Our generation grew up with a mix of physical and digital experiences, so we never felt a deep disconnect. But younger generations have only ever known a digital world, and now there\u2019s a noticeable shift back toward local, community-driven experiences.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Barnes & Noble seems to be embracing this shift. I was reading about their new strategy\u2014they\u2019re seeing strong sales growth and plan to open 60 new stores. But what\u2019s really interesting is how they\u2019re approaching it. Instead of uniform inventory across all locations, each store manager curates their selection based on local tastes and interests. That makes every store a unique experience, tailored to its community.<\/p>

It reminds me of UMCU [University of Michigan Credit Union]. Their branches are intentionally designed as community spaces. They have fireplaces and seating areas where people actually hang out and read. It\u2019s not just a place to do banking\u2014it\u2019s a gathering spot. They even let people rent conference rooms for meetings or birthday parties. That kind of hyper-local, experience-driven approach seems to resonate with people.<\/span><\/p>

Walter:<\/strong> It all comes back to creating intentional, engaging experiences that go beyond transactions. That seems to be where retail is headed\u2014whether online or in-person, brands that focus on community and experience will be the ones that succeed.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

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How do you advise clients strategically on creating a hybrid digital and in-person experience?<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Walter:<\/b> It starts with continuously collecting consumer data and knowing how to mine it for actionable trends and insight. It\u2019s surprising how often even we, as marketers, lose sight of doing consistent research to track where our consumers are and, more importantly, how and where our future consumers want to engage with us.<\/p>

Consumers were the first indicator that it was time to go digital, and I think they\u2019ll be the ones to signal when it\u2019s time to shift to in-store again. Brands considering a return to brick-and-mortar shouldn\u2019t just rebuild the old model. They have the opportunity to reimagine the store front with a future-forward approach, aligning with how consumers want to engage today and tomorrow. The right answer may not be an either\/or. By reading consumer attitudes and moves, we can assess the right combination of digital and in-store experience.<\/p>

This isn\u2019t something you can force. You have to watch for predictive signs that consumer behaviors and needs are evolving\u2014indications that some needs can\u2019t be fully met online or that in-person interactions could offer an enhanced experience.<\/p>

There has to be a real reason to turn back to brick-and-mortar because, let\u2019s be honest, it\u2019s far cheaper to operate online. The cost savings of eliminating physical locations are substantial. Moving back to a more expensive, labor- and capital-intensive model has to be justified by data-proven consumer demand or business opportunity.<\/p>

Until brands see their consumers seeking in-person experiences, maintaining and optimizing digital strategies is the smartest move. Given the current economic landscape, I wouldn\u2019t advise any brand to rush back into brick-and-mortar. But if there\u2019s an inkling of demand, they could start small\u2014maybe test the waters with a pop-up. There\u2019s no shortage of vacant retail spaces right now that could be repurposed for short-term experiments.<\/p>

Alan:<\/b> There\u2019s no question\u2014you cannot reduce investment in digital. Every study we\u2019ve done shows that consumers still expect a seamless digital experience. That\u2019s no longer a differentiator; it\u2019s table stakes.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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If a brand\u2019s digital experience isn\u2019t strong\u2014whether it\u2019s the app, UI, customer support, or tech capabilities\u2014consumers won\u2019t engage. It used to be a consideration point, but now it\u2019s the baseline. If a brand lacks a solid digital experience, they\u2019re simply not in the running.\u00a0<\/p>

But at the same time, consumers are looking for more meaningful interactions with brands. We see this across industries, whether it\u2019s financial services, retail, or even organizations like AKC [American Kennel Club]. People are overwhelmed by constant digital noise, endless options, and faceless transactions. They want positive interactions with the brands they choose to engage with.\u00a0<\/span><\/p>

That doesn\u2019t mean every brand needs to rush back to brick-and-mortar. But there are ways to create experiences that foster real connections\u2014whether that\u2019s through pop-ups, sponsorships, or community events where brands can have a physical presence. Consumers are far more open to these types of interactions than they were a decade ago.\u00a0<\/span><\/p>

Look at something like the Oscar Mayer Wienermobile\u2014it\u2019s been touring for the past few years, and people love it. You\u2019d think, \u201cWho cares about a giant hot dog on wheels?\u201d But families bring their kids, people take photos\u2014it\u2019s a brand interaction that sticks.\u00a0<\/span><\/p>

The key is to be intentional. Some brands benefit from physical activations, while others need to double down on digital. The ones that get it right create experiences that feel meaningful and memorable to consumers.\u00a0<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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How do you create that sense of community and deeper connection if your brand is only digital?<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Alan:<\/strong> It seems like a no-brainer, but brands must invest in consumer research. Without it, you don\u2019t really know your audience\u2019s motivations, needs, or what makes your brand relevant to them.<\/p>

We talk about Market Less, Matter More. What does it mean? At Leap Group, our mission is to make brands relevant. That might not sound flashy, but what brand doesn\u2019t want to be relevant to its consumers? And you can only achieve that if you understand what drives them\u2014what they find interesting, what they need.<\/p>

For example, I follow some brands that text me constantly, and while most people would find that annoying, I keep them because they create a great experience. One restaurant I frequent sends funny texts like, \u201cHaven\u2019t seen you in a while! Are you starving? How much weight did you lose?\u201d It\u2019s playful, it makes me laugh, and when I want a coupon, I have it ready. So, it\u2019s a mix of science\u2014tracking my visits\u2014but also using emotion to connect in a way that isn\u2019t obnoxious.<\/p>

Walter:<\/strong> If you\u2019re in the digital space, you must reward people for their time. Digital marketing is inherently intrusive. Consumers are online looking for information or entertainment, and digital ads interrupt that experience.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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If I\u2019m going to pause a video or stop reading an article to click on an ad and visit your website\u2014you need to make the experience worth my while. Remember, I didn\u2019t seek out your brand. I didn\u2019t plan to make a purchase. I\u2019m choosing to take a chance and engage with your content and website instead of what I originally intended to do. If that experience is frustrating or unrewarding, it\u2019s a waste of my time\u2014and I\u2019ll remember that. Conversely, if you know your audience and have catered your digital experience to their preferences and needs, that relevance will lead to deeper connection. Brands need to sweat every detail of their digital communication and destination to cultivate authentic connection and community.\u00a0<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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What are other aspects brands should consider in creating their digital experience?<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Alan:<\/strong> The product has to be good. Consumers are exhausted by empty promises. For example, I signed up for Rocket Money after seeing all the ads. I figured, \u201cOkay, I\u2019m probably paying for subscriptions I don\u2019t even know about.\u201d It turned out to be a fantastic experience. Within a week, the app saved me $271 a month on subscriptions I had no idea I was still paying for.<\/p>

And here\u2019s where they got really smart\u2014after using the service for a bit, they hit me with a message: \u201cHey, has this app been helpful?\u201d I thought, Yeah, absolutely. Then they said, \u201cWell, we only charge $3 a month to cover our costs, but if you think it\u2019s worth more, would you pay $10?\u201d It\u2019s brilliant. They built such a great product that people want to pay more for it\u2014even though they didn\u2019t have to.<\/p>

Walter:<\/strong> Right, I think we are honing in on two key factors: One, reward consumers for their time with a great digital communication and destination experience. And two, create a sense of relevance and connection. Now that digital-first is table stakes, brands must work harder to go beyond that and develop connections with their consumers\u2014whether through sponsorships, promotions, or showing up at events that your audience cares about.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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The path to deeper connection might not seem obvious at first. Years ago, I worked with a brand selling annuities and to promote them, we partnered with rock concerts. On the surface, annuities and rock & roll don\u2019t seem like a natural fit. But who can afford and benefit most from annuities? Older consumers with disposable income. And what are older, affluent consumers collectively passionate about? The music they grew up with.<\/p>

The generation who created classic rock in the \u201860s and \u201870s still love rock & roll – and bands and artists from that era are still touring. So, we aligned this brand with concert tours. This gave annuities and the digital brand a presence at shows and an opportunity to engage in-person with consumers (through activities, trivia and photo-ops) and made financial planning feel like a natural part of their lifestyle.<\/span><\/p>

People were surprised to see us there\u2014but in a good way. It was an unexpected connection that enhanced their concert experience. And because they felt like they got something out of it, they were more than willing to give us a few minutes of their time and sign up for more information.\u00a0<\/span><\/p>

Alan:<\/strong> That\u2019s exactly where an agency can add value. It\u2019s not just about running ads\u2014it\u2019s about finding those unique connections and understanding your consumers at a deeper level. Most brands spend so much on advertising just to convince consumers that they\u2019re barely worth the price. Rocket Money did the opposite\u2014they let the experience prove the value first, and then asked, \u201cHey, do you think this is worth more?\u201d That\u2019s a completely different mindset.\u00a0<\/span><\/p>

It all comes down to creating a great customer experience\u2014not just a marketing experience. Yes, advertising, marketing, and media spend are important. But if the product experience isn\u2019t great, all the ad dollars in the world won\u2019t make a difference.\u00a0<\/span>Brands that get this right\u2014whether digital-only or hybrid\u2014are the ones that truly connect with consumers in a meaningful way.\u00a0<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"

Leadership Lens is a series in which we feature Leap Group leaders discussing industry trends, shifting landscapes, and other topics crucial to brand relevance. There\u2019s no question that digital continues to dominate the retail landscape: the global e-commerce market is expected to total $4.8 trillion this year, with online sales expected to account for 23% […]<\/p>\n","protected":false},"author":40,"featured_media":5732,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"issue":[],"collection":[],"class_list":["post-5725","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"acf":[],"gutentor_comment":0,"_links":{"self":[{"href":"https:\/\/leap.staging.ribbitt.com\/leap-group\/wp-json\/wp\/v2\/posts\/5725","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/leap.staging.ribbitt.com\/leap-group\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/leap.staging.ribbitt.com\/leap-group\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/leap.staging.ribbitt.com\/leap-group\/wp-json\/wp\/v2\/users\/40"}],"replies":[{"embeddable":true,"href":"https:\/\/leap.staging.ribbitt.com\/leap-group\/wp-json\/wp\/v2\/comments?post=5725"}],"version-history":[{"count":16,"href":"https:\/\/leap.staging.ribbitt.com\/leap-group\/wp-json\/wp\/v2\/posts\/5725\/revisions"}],"predecessor-version":[{"id":5768,"href":"https:\/\/leap.staging.ribbitt.com\/leap-group\/wp-json\/wp\/v2\/posts\/5725\/revisions\/5768"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/leap.staging.ribbitt.com\/leap-group\/wp-json\/wp\/v2\/media\/5732"}],"wp:attachment":[{"href":"https:\/\/leap.staging.ribbitt.com\/leap-group\/wp-json\/wp\/v2\/media?parent=5725"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/leap.staging.ribbitt.com\/leap-group\/wp-json\/wp\/v2\/categories?post=5725"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/leap.staging.ribbitt.com\/leap-group\/wp-json\/wp\/v2\/tags?post=5725"},{"taxonomy":"issue","embeddable":true,"href":"https:\/\/leap.staging.ribbitt.com\/leap-group\/wp-json\/wp\/v2\/issue?post=5725"},{"taxonomy":"collection","embeddable":true,"href":"https:\/\/leap.staging.ribbitt.com\/leap-group\/wp-json\/wp\/v2\/collection?post=5725"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}