The Future of Dark Stores

NEW YORK CITY—Brick-and-mortar locations for order-fulfillment-only sprung up during the pandemic, but what does the future hold for such facilities? Multichannel Merchant reports that the so-called dark store trend has acquired a strong foothold in the retail environment.

For example, Bed Bath & Beyond will turn a quarter of its stores into order fulfillment facilities, while Walmart and other national retailers plan similar changes at some locations. Some shopping malls have gone dark in order to compete better with Amazon.

Even temporarily transforming an underperforming location into a dark store can help retailers provide same-day delivery or buy online, pick up in stores (BOPIS) options. A dark location gives retailers more freedom to let team members concentrate on customer service rather than plucking merchandise from store shelves while dodging in-store shoppers.

Supermarkets have also embraced their dark side, with Giant Eagle, Hy-Vee, Kroger, Stop & Shop and Whole Foods all playing around with fulfillment-only locations. Some grocers are experimenting with “dark aisles”, where part of the store is open to shoppers and the rest runs as an order fulfillment center.

But as COVID-19 vaccines roll out, will there still be a need for dark stores in a post-pandemic world?

“It’s all about finding the right mix of best-in-class store experiences, customer service and operational flexibility that boasts a healthy mix of BOPIS, e-commerce and efficient delivery solutions,” Multichannel Merchant reported. “Key to success is integrating multiple channels and fulfillment solutions with both online and offline experiences to guide consumers toward purchase. … But dark stores shouldn’t be your only strategy. Keep expanding your assortment, opting to create a one-stop shop for essentials or a hybrid model where you use an adjacent retail space as an e-commerce fulfillment center.”

Facilities management