Stores Are About To Make These Radical Changes To Compete With Online

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Brick-and-mortar retailers are making some big changes to prepare for competition from online in the next year.

Gary Lombardo at Demandware, a provider of cloud e-commerce solutions, sent us a few of his predictions for how shopping will change for customers this year. He's worked with companies like Kate Spade, Crocs and L'Oreal.

Here's how he says stores will change:

• Stores will be smaller and more interactive. Stores will begin to modify their locations to have less square-footage. Customers will engage with devices like iPads.

• Retailers will start promotions like coupons and giveaways that customers can access through their smart phones or tablets.

• Brands will creep toward making the "digital wallet" a reality, starting with accessing loyalty cards on cell phones.

• Retailers will offer quick and free shipping to compete with Amazon.

• Stores will replace cash registers with digital devices like iPads. We've already seen this from Urban Outfitters.

• Social commerce will come of age. New methods will make it easier for shoppers to buy products or redeem promotions from their social networks.

According to Lombardo, shoppers will start to see these changes as soon as this holiday season.

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