Digital stores create new opportunities: it allows retailers to create points of sales in locations where there is no large store potential or in locations where there’s not enough space to build a classic store, Media Markt chief Ferran Reverter says.
Major difference with classic store
On 2 February, Ferran Reverter, Media-Saturn Iberia’s CEO will be one of the speakers at RetailDetail’s Omnichannel Congress in Urban City (Antwerp). He will talk about the electronics chain’s digital store in the Avinguda Diagonal, one of the Catalan capital Barcelona’s major shopping streets.
Futuristic and high-tech, the Digital Store is quite incomparable to Media Markt and Saturn’s traditional stores, because of several reasons. With its floor surface of 400 sqm, it’s small compared to the traditional stores. Moreover, on large touch screens visitors can view not only the 5,000 items that are stored in the shop, but the entire product range that can be found on the Media Markt website.
Around 5,000 items are stored behind glass in a small warehouse in the back. According to Ferran Reverter these products are the most demanded ones, “and this immediate availability helps us to satisfy the customer’s desire of instant delivery”. Whoever wants to buy something can ask for it at the shop or get it delivered at home through the web shop. Customers can also pick up their online orders in an automat.
Finally, the Digital Store has information desks for business and regular customers alike. “The digital store brings together the advantages of the online world (convenience, speed, competitive prices and the full range products) and the advantages of the physical store (support of an expert team, more than 200 different services, customer training and extra experiences to get the most out of the products)”, Reverter concludes.
Digital store allows deeper store network penetration
The reason that the first digital store was built in Barcelona is because the idea was developed in Spain and it was ideal for the store to be near the main office. Barcelona is also considered a trendy city, which fits the idea for the store.
From the beginning the store has been well-accepted by customers and sales have been good from the first day. “As the store is conceived as a test, we decided to do a soft launch. But the store is having such a good acceptance, that a big opening campaign hasn’t been necessary”, Reverter adds.
However, the chain has not yet taken a decision whether to expand the formula to the rest of Spain or even abroad. “It is too early for such a decision.”
Once taken, it could lead to a store network expansion, because “people are no longer willing to drive 50 kilometers for a store”.
Everything is measured
A digital store is not only interesting for the consumer, but also for the retailer, because everything can be measured. This will help detect new consumer trends more rapidly.
“The digital store not only gives us an insight into what is selling well, but also into what customers watch but do not buy. In a highly competitive retail market, that information is crucial and it allows us to avoid profits leaking away.”
Reverter: “It is generally accepted that multichannel is the future and you will not survive with online alone. Physical points of sale are still important to meet the immediate customer needs, but we will need to place an emphasis on store experiences and we will have to train our staff on this matter, even in larger stores.”
