10 Sep
For many years, the common thinking was that online retailers could succeed without any physical stores. With the rise of e-commerce, a “digital-only” strategy seemed perfect for success. But trends now show that even the biggest online brands are adding brick-and-mortar retail shops to their business. There are clear reasons for this. Relying only on a website limits business growth in a few important ways.
So, why do customers still want to shop in a physical storefront?
Face-to-Face Customer Service
A big challenge for online retail is the lack of direct interaction. Customers cannot touch and feel products before they buy. They have questions but can’t get immediate help. Stores let customers come in for more information or assistance. They can talk to employees and get problems solved quickly. This improves the customer experience over just using email or phone calls.
Try Products Before You Buy
For items like clothing, customers want to try them on first. They need to see how something looks or fits. Online descriptions and photos are helpful, but they can’t replace the in-person shopping experience. Physical stores give customers a chance to examine and test products. This helps them make a final purchase decision.
Build Brand Recognition
A company that is only online is harder to remember. A physical store helps a brand get noticed through signs and displays. As more people see the store and its products, the brand awareness becomes stronger in their minds. This added visibility can lead to more website visits and repeat purchases. It also helps attract new wholesale customers.
Encourage Social Shopping
Today, people often shop with friends and share their finds on social media platforms. Stores allow customers to bring friends along to browse together. Friends can take photos of each other trying on clothes to post on Instagram or Facebook. This creates word-of-mouth marketing. Stores can also host in-store events to encourage sharing about new product releases.
Provide for Spontaneous Purchases
When a customer is near a store, they might make an unplanned purchase. They see a sign, walk in, and find something they love. These extra impulse buys add to a retailer’s revenue. Many of these purchases happen when customers visit a store to return an online order.
Better Product Displays
Online retailers have limited ways to showcase products. Physical stores have more creative freedom with large displays, careful merchandising, and lighting. They can control the entire atmosphere. This immersive branded experience attracts shoppers who then make impulse buys of items they might not have considered otherwise. This is a key part of experiential retail.
Simplify Local Inventory
E-commerce fulfillment from a central warehouse means shipping delays and high costs. Stores let online orders be fulfilled in-store for faster local delivery. This speed keeps shoppers happy. Stores also provide a place to manage extra stock and make returns easier than shipping items back. This omnichannel retail strategy connects online and offline inventory management.
Recruit and Hire Staff
Running stores allows a company to meet and hire quality local employees. They can evaluate candidates and see their customer service skills in person. This is hard to do online. Employees hired from stores can take on various roles as the company grows. This helps build a strong retail team.
Generate More Revenue
In addition to product sales, stores can bring in extra money from things like retail partnerships, gift cards, and pop-up shops. They might partner with a cafe or cell phone company. Gift cards attract customers who often spend more than the card’s value. These programs help boost a company’s financial gains beyond just online sales. This is a major benefit of a unified commerce approach.
To connect physical and digital operations, a unified retail management platform is key. To learn more about how a retail POS system can link stores and online sales, sign up for a free demo on Hana Retail.
