No you didn’t read that title wrong, brick-and-mortar stores will make up 80% of US retail sales in 2020, according to McKinsey & Company. Although we have seen many big brick-and-mortar players scale down their physical presence, namely Macy’s and Wal-Mart, we’ve also seen the opposite effect for online-only retailers. Some of the biggest names in online are making their way to physical stores, and this trend is only going to continue.
From online to in-store
Amazon is known as the online giant that every retailer has to compete with, but they changed their strategy last November by opening their first physical location, a bookstore. And they’re not the only online giant in their space to do so: Warby Parker, Bonobos, and Birchbox have all opened brick-and-mortar stores.
Why the change? Online retailers are realizing the payoff in having physical locations and the different kind of convenience it offers their customers. A physcial store offers brands the opportunity to create a unique experience, interact with their customers and discover their habits, provide one-on-one customer support, and increase sales. Customers are more likely to buy a product when they see it in person, plus it makes returns and exchanges easier. This isn’t to say that they will begin using brick-and-mortar stores as their primary way of contacting customers, but they will use it in addition to their already succesful online businesses.
One channel for online and physical
If you have an online store that is doing well, you may want to think of opening your own physical store location. How can you succed in opening a physical store? By going ominchannel. There needs to be a seamless transition between the offline and online in order for customers to experience the same great service an omnichannel system provides. By having an omnichannel system, you can make sure that your inventory, POS systems, back office, and more are connected in a single channel that will allow you to view your entire companies progress.
Transitioning from online to physical stores? Speak to the experts at ArcherPoint to see how LS Retail can help create the omnichannel solution your business needs to succeed.