As more consumers turn to digital channels to engage with brands, brick and mortar stores are reshaping their business strategies. Traditionally, they were able to operate as standalone businesses without an online presence. However, many traditional companies have created simultaneous web-based businesses, allowing them to benefit from lower overhead costs and more flexibility for customers.
While brick and mortar businesses still have a strong presence, some are closing their doors. Some of the most recent examples include Radio Shack and Gamestop. The Limited and Sears are also facing financial troubles. In response, retailers are using brick and mortar stores as hubs for their omnichannel marketing efforts.
Brick and mortar stores are able to provide more personalized services. They allow customers to talk with sales representatives, get advice and try on a product in the store. This helps boost customer satisfaction and gives retailers more opportunities to upsell. Aside from interacting with the product, brick and mortar stores allow consumers to take the item home immediately. Customers can test out the product and see the color or texture first.
Brick and mortar stores also have lower fulfillment costs. Compared to ecommerce, in-store transactions require fewer fees and offer customers the chance to try on the item before they make a purchase. Depending on the product and the retailer’s logistics, in-store sales may require customers to travel, which can make the experience more cumbersome.
Brick and mortar stores have a limited number of products they can display, which limits their potential customers. For instance, if a consumer is shopping for a pair of shoes, they may have to look for several sizes before they find the one that fits. Purchasing a product online does not allow them to try the shoe on, so the ecommerce shop must pay for shipping. Also, it may be hard to offer free returns. Despite the disadvantages, brick and mortar shops can be a cost-effective business model for some businesses.
Online businesses have a better track record for conversion rates, but they may not have the ability to provide free return shipping. Additionally, consumers are wary of submitting credit card information online. If a brick and mortar store experiences a data breach, they may be hesitant to continue shopping.
Another advantage of brick and mortar stores is the ability to offer in-store events and events that are not available online. Popular brick and mortar stores include department stores, specialty stores and grocery stores. Other types of brick and mortar stores include restaurants, auto repair shops, hair salons, and gas stations.
Many consumers still prefer to visit a physical store for their purchases. However, the emergence of ecommerce has made it more difficult for traditional retail stores to compete. Retailers need to be strategic in order to remain competitive. To do this, they must focus on their customer experience and their displays.
Today’s customers are looking for convenient ways to buy. This includes options such as buy online, pick up in store and local pickup. It is important for brick and mortar stores to use technology to entice customers and maintain their relationship with them.