Retail Life Cycle: Advantages of Brick & Mortar


MARCH, 2017

Industry Insight
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: (Aug, 2015)

“Stores Are the New Black”

Scott Galloway
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