The Importance of Brick and Mortar Shops for Online Retailers

December 8, 2014  By
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We are seeing an emergence of online stores opening pop up shops all across the country. Retailers like Nasty Gal, Revolve, and Warby Parker are right at the forefront of this new paradigm shift in retail.nasty-gal-brick-and-mortar

Why are online stores opening offline shops and what does this mean for retailers?

The answer to why this paradigm shift is happening in retail is because of two words “instant gratification.” Studies show that Gen Y’s are less patient and demand instantaneous shopping. A brick and mortar shop is another good way to build a personal relationship with your customer. It seems like a paradox doesn’t it? Isn’t online commerce supposed to be the future of retail? Well according to Reuters, online retail increased by 24% in 2014 from a year earlier. However, offline sales are still the dominant factor in retail with a total of 92% of the market.

Online retailers opening a physical pop-up shop or location may be hanging on to their technology roots with bringing in more innovative or newer technology that can enhance the shopping experience the physical store.  Some of the technology to look out for are ibeacon, magic mirrors, virtual fitting rooms, as well as good old fashion face-to-face contact with personal shoppers.

So how does this technology personalize the customer experience you ask? If you watch the videos below you will understand how retailers are using technology to better serve you by using data to better understand your shopping behaviors and provide a more personalized customer experience.

Magic Mirrors by Ebay

iBeacon for retail by Shopkick

Topshop Virtual Fitting Rooms

5 Reasons Why Consumers Should Be Thankful for Brick and Mortar Stores

1. In Store Pick Up

This is the latest in trends for large retailers that have large inventory that is available for pick up at the nearest location. I’ve seen stores like Nordstroms, Best Buy, Macys, and many others adopting this integration.

2. Merchandise Returns
Having a brick and mortar location makes it much more simple for consumers to return items in store versus sending it back through a local mail courier.

3. Supporting the Local Economy
Purchasing local, particularly from a smaller retailer helps the local economy.

4. Convenience
If you are in an urgent scenario where you need to purchase clothing immediately, and do not have the time to wait for your clothes to come in the mail, this is the answer for you. The ability to try on multiple sizes in one place sure beats ordering two of everything you want and have to deal with the returns later.

5. Larger Purchases are Best Made in Person
Large purchases like jewelry and furniture are typically best to buy in person. Consumers appreciate the immediacy of these type of large transactions and it helps to get input from an experienced sales rep at the store to be sure you are making the right decision.

Wait…There’s more. Social Benefits for Brick and Mortars?

That’s right. Brick and Mortars are going social. For businesses that are solely online retailers, having a physical location can mean that they may be able to compete or participate in the shop and social game. They no longer will miss out on “experiential shopping” and now instant “social sharing” in stores is becoming the norm. As seen in the previous post, Gilt.com’s physical pop-up shop and NastyGal’s first location provided professional “Selfie” like cameras to capture animated gif like images and video that encourages social sharing inside the store. See the “Gilt.com’s Pop-Up Shop in LA” article and the photo shot at the Nasty Gal Los Angeles location.

taking photos inside shop inside Nastgal Melrose

It’s an exciting time for retail! We would love to hear your feedback on your experience with your favorite online store turned brick and mortar. Feel free to comment below.

Stay tuned for a follow up article on how some of the top retailers in the world are combining their online stores with their offline shops to create the ultimate customer experience.

HAPPY SHOPPING!

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Anthony Flores
Anthony Flores
Co-Founder and tech entrepreneur. Anthony's passion and experience for retail and tech has inspired him to develop insightful contributions in retail and help develop our technology to take advantage of the ever evolving changes in the retail industry. Anthony has first hand experience with SEO, SMM, SEM, Web Development, Mobile strategy and growth.
http://ammobia.com





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