Summary
Specialty stores, particularly those that had a significant brick-and-mortar presence, have faced pressure worldwide, with reduced foot traffic and periodic store closures affecting performance. And for those who were experiencing declines in traffic, these pressures only accelerated their decline.
All hope is not lost, however, as the situation presents specialty retailers with several opportunities. Despite widespread store closures, many physical retailers that remain have moved to smaller, highly experiential stores that are tailored to the local market and offer a seamless omnichannel experience.
Perhaps predictably, specialty stores that had innovative e-commerce systems already in place were able to quickly shift their offering online, which included translating their renowned high-quality, personalized service to a digital format. However, as the costs associated with e-commerce grow increasingly high, cost optimization will be paramount moving forward. Inventory management, supply chain and process innovation, and data-driven demand planning will all be critical to success.
While the short- to medium-term future may seem daunting for specialty retailers, those willing to move quickly and invest in innovative technology and infrastructure will, ultimately, have the upper hand.
