In idol dramas, there would be a scene where the male and female lead characters bypassed each other without noticing. Fate is sometimes so near yet so far. The same goes for the 162-year-old department store Robinsons, which had recently announced the closure of its last two stores in Singapore, and its customers.
In dramas, it could be a vehicle that prevented the lovebirds walking on opposite sides of the road from noticing each other. It could be someone holding a large promotional poster that blocked their views. In Robinsons’ case, its branding proposition and the advent of e-commerce probably formed the obstacles. The COVID-19 pandemic only accelerated the decline of the weak relationship.
Some relationships are not meant to be. Robinsons courted high-end customers. However, their products were in the middle-end, similar to what Tangs and Takashimaya offer. Robinsons also launched an e-commerce website in 2016, in pursuit of those who are savvy in online shopping. Again, the courtship failed, because high-end customers want unique products that are not found elsewhere. When the online offering is ubiquitous, it only warrants a fleeting glance from the uninterested customer.
Robinsons rolled out many sales campaigns, which is not a particularly effective tactic for luxury customers. The company also rolled out vouchers, but high-end customers commonly pay by credit card, and vouchers do not seem so compatible.
In addition, 2016 seemed a bit too late for a big brand to make the digital foray. The launch of the website was also not communicated extensively. I am a Robinsons’ member, but I did not hear of the website until recently. Robinsons previously told TODAY that “the online model is not one that works for department stores, due to individual brands wanting to maintain brand ownership online as well as stiff competition from full-fledged e-commerce sites.”
Yet, other brands have managed to find success in such dilemmas.
The online goes offline
Physical stores do not die just because online stores thrive. In fact, some online brands have gone physical. E-commerce giant Amazon bought Whole Foods and established the physical supermarket Amazon Go. Once a customer scans the mobile app at the entrance, he can take the items from the shelves, put into his shopping bag, then leave. There is no need to scan the items, the computer vision and sensor technologies take care of that. There is no need to queue up to pay, the customer’s Amazon account handles the sum accrued from the virtual cart.
Another example is Alibaba which introduced Hema, the physical grocery chain. Hema offers a unique shopping experience. Want to find out more about a product? Scan the QR code and learn about its origins. Want to buy seafood? There are chefs in the store who can cook it for you. Time to check out? You can do so with facial recognition payment technology. The store also doubles up as a warehouse for grocery that customers buy online.
Such concepts tell us that when stores offer something unique, customers will come.
Other big department chains have to create a unique shopping experience of its own. In the online arena, sell on the department store’s website, and other e-commerce platforms too. For example, TAKA Jewellery’s goods can be found on the platform Shopee.
Department stores would also do well to curate different goods on both the online and offline platforms. Of course there can be an overlap, but the two lists should never be identical. Some items can be sold only offline, so that people have one more reason to visit the physical store. People already love to shop in physical stores, it is a form of socialising. What department stores can do, is to give them more reasons to do so, such as that limited item that can only be redeemed in store.
Millennials, which will form a greater bulk of shoppers in future, tend to eschew scrutiny while shopping. To some, it may feel like an encroachment of privacy. Hence department stores can pay more attention to this aspect and configure the most appealing type of service for various customer segments. When delivered well, the type of service can also be a differentiator among brands.
Robinsons’ announcement of its last two stores in Singapore tugged the heartstrings of many. Its relationship with Singapore customers could have been the well-praised story of a long-lasting marriage. With time, it turned out to be a relationship that was never to be. Robinsons is not the only old-name in recent years to go out of business. American department store chains JC Penney and Sears, each established more than a century ago, had filed for bankruptcy. Toys R Us, with 70 years of history under its name, closed more than 800 stores in the United States in 2018, though it still has stores in Singapore. Unfortunately, Robinsons has followed the path of these brands. Its name and years of experience could not help it ride out the pandemic. To loyal customers, Robinsons’ closure feels like the heartache that a break-up leaves behind. Then Robinsons became an ex-lover and customers are on the lookout for new relationships again.