4 myths about brick-and-mortar retail debunked
Brick-and-mortar retail is not going to be replaced by online shopping – far from it. More retailers are integrating their shopping experiences across all mediums with omnichannel strategies and ecommerce software that allow customers to seamlessly transition from online browsing to in-store shopping, and this seems to be paying off.
Myth #1: Consumers prefer shopping online.
While online shopping is a growing sector of retail, consumers are not shying away from visiting store locations to make purchases. A study conducted in 2013 by global management consulting firm A.T. Kearney found that more U.S. and U.K. shoppers were heading to brick-and-mortar locations than shopping online. Specifically, 61 percent bought items in-store versus only 31 percent who shopped online.
Myth #2: Physical stores are just showrooms now.
For a while it looked like consumers were beginning to visit stores exclusively to examine products before returning home and ordering these items online, but that stampede has slowed significantly. In 2012, roughly 50 percent of online purchases were made after consumers visited stores, but this number dropped to just 30 percent in 2013, according to IBM studies as reported by AdAge.
Myth #3: Brick-and-mortar stores cannot compete with online technology.
There have been many advancements in technology that make it easier than ever for retailers to enhance the way they run their brick-and-mortar locations. For instance, the point of sale experience can be enhanced with modern POS software that makes transactions more efficient. Merchants may be able to track their customers' purchases to tailor special promotions to the individual. Retail Customer Experience pointed out that customer-specific data can be used for loyalty and rewards programs that have the potential to drive in-store sales even higher.
Myth #4: Online prices are too competitive for brick-and-mortar to match.
Online retailers may be able to offer lower prices on the same goods that are sold for more in brick-and-mortar stores, because the businesses don't have to factor in extra costs of running a store. However, more than 50 percent of shoppers said they would buy in-store after researching product information and reviews online, according to a report titled "Showrooming and the Rise of the Mobile-Assisted Shopper."
"[Mobile] shoppers show a strong willingness to join loyalty programs in exchange for rewards, and this gives retailers the chance to build long-term relationships with them," said study co-author Rick Ferguson, vice president of knowledge development at Aimia, a global loyalty expert that partnered with Columbia Business school to conduct the research.
The rise of online retail presents new challenges for the brick-and-mortar sector, but there are myriad ways for businesses to enhance their physical locations to continue to appeal to shoppers.
