Retail Life Cycle: Advantages of Brick & Mortar
Brick & Mortar
“E-commerce companies are either going to open stores or go out of business” said Scott Galloway, a NYU-Stern School of Business Clinical Professor of Marketing, and founder of L2, a Business Intelligence Firm.
Source: http://www.therobinreport.com/stores-are-the-new-black/ (Aug, 2015)
“Stores Are the New Black”
NYU-Stern School of Business Clinical Professor of Marketing,
Founder of L2 (Business Intelligence Firm)
Why are retailers, that were once online-only performers, opening Brick & Mortar?
Lack of Brick and Mortar Advantages.
Advantages of Brick & Mortar:
- Sensory Experience – see, touch and feel products
- Immersion in brand experiences, not possible online
- Engagement with sales associates or product experts who provide tips and instruction
- Entertainment and socialization
- Immediate Satisfaction – Buy and receive product NOW
- Upselling / Impulse Purchases – 40% of in-store shoppers spend more than they planned to.
Potential Sales eCommerce Misses.
Total U.S. Retail Sales:
- Physical Store Sales 90% 90%
- Pure-play Online 5% 5%
- Multichannel Online 5% 5%
Source: A.T. Kearney Analysis