I was cleaning out some old stuff on my computer this morning when I came across a receipt for something I had purchased online in 2005. I knew I had been an online shopper for a long time. I can’t recall the last holiday season during which I stepped foot into a retail store. I mean, I don’t like to so shop for anything on the weekend due to crowds and lines so I’m rarely in a physical store between Thanksgiving and Christmas.
Given the explosive growth of online commerce, apparently many other folks prefer not to hit the stores either. I mean, the share online represents of global retail sales has almost doubled from 2015 to 2018, and is projected nearly to triple by 2021. It’s booming! That said, online is still less than 15% of retail and will be less than 20% even 5 years from now. There’s a reason for that and it’s not just shipping costs or the difficulty in finding a product.
Most people – almost 75% according to a recent study – visit stores to touch and feel products. If you’re browsing and come across an unfamiliar brand of shoe or clothing, how comfortable are you buying it without examining it for quality and fit? I’m certainly not, and I share that feeling with the vast majority, apparently. Sure, the return process isn’t as difficult as it used to be with many online stores, but who wants to deal with it? I want to see the product, which I can do on or offline, but I also want to feel it, touch it, and check it for quality.
That’s a significant advantage that brick and mortar stores have, one that they should exploit to keep market share. They can merchandise product in a way that online stores can’t. They can use in-store displays. More importantly, as we’ve said many times here on the screed, they can offer a level of personalized customer service that no online store can offer.
Try it yourself. Before you go on a shopping trip, hit the store’s online presence first. See if the two experiences are equal. If the retailer’s physical presence is doing things right, there won’t be a comparison. Shopping for a golf club or a bat or a racquet online at Dick’s Sporting Goods is nothing like going to my local Dick’s store and swinging it. I can browse through a lot more books in a shorter time at my local Barnes and Noble vs. their online store. I’m on my own online. There are pros in golf and tennis to help me in-store.
I don’t think brick and mortar is dead, not by a long shot. I do think stores will fail if they don’t take advantage of the built-in advantages they have. Cutting staff, not investing in merchandising, and simply becoming warehouses where people pick up their online purchases won’t cut it. Does that align with your thinking?.
Consult Keith 