Bricks and mortar versus online retail – it wouldn’t be accurate to say this is a subject of great debate. This is because there’s a common consensus among most retailers and consumers that e-commerce is rapidly devouring the high street as we know it – end of. And with e-commerce sales in Australia growing from AU$27 billion in 2013 to over AU$32 billion in 2017, it’s a viewpoint that seems justified.
But we shouldn’t get carried away. Yes – the online retail space is growing at an alarming rate, offering a great entry point into the market for many small businesses catering for Australia’s growing number of online shoppers, but this growth isn’t necessarily coming at the expense of traditional bricks and mortar stores. In fact, many small businesses are beginning to understand the mutually beneficial synergy between bricks and mortar and online retail.
Here are some of the many benefits brought by bricks and mortar stores that online shopping alone simply can’t offer.
Showrooming (and reverse showrooming?)
Unfortunately, online product descriptions are rarely adequate. They can’t convey accurate sizing and they’re often silent on the question of quality (for obvious reasons!) That’s why many young shoppers today target bricks and mortar stores so they can see and feel products before making a judgement for themselves – this is called “showrooming”.
Customers who “showroom” often prefer to complete the purchase via the online store, rather than making on-the-spot decisions. And with new cost-effective same-day delivery services such as Go People, they don’t need to compromise on the immediacy of their purchase either.
So, does that mean bricks and mortar stores will eventually become showrooms only for online shoppers? Not exactly, thanks to a phenomenon known as “reverse showrooming”. This refers to shoppers who choose to do their research online before completing the purchase in store. In fact, more people in the US are reported to have “reverse showroomed” (69 per cent) than “showroomed” (46 per cent).
Whether it’s reserving products online to pick up in store or completing a purchase online with super-fast crowd-sourced delivery services, technology has made bricks and mortar stores even more integral to the complete retail experience.
Bricks and mortar deepens trust
Of course, there’ll be plenty of online consumers who don’t “showroom” or “reverse showroom”, but just before we give full credit to the online retail sector and all its advantages, think about this: many consumers choose retailers who also have a physical presence so they have peace of mind they can walk into a store and talk to someone if need be.
This is particularly common among customers who make high-value purchases because it gives them security knowing they can take faulty products into a store and seek on the spot solutions.
A place for stock storage
Bricks and mortar stores are especially beneficial to small businesses who are otherwise faced with the burdensome costs of warehousing and handling. Having your own physical store not only provides another access point for potential customers, but it provides a place to store, send, and receive products sold online.
Technology-driven courier solutions such as Go People provide retailers with everything they need to independently fulfil their orders quickly and efficiently without engaging middlemen.
It’s all about branding
Despite what you might think, we’re not seeing a mass exodus from bricks and mortar stores to online. In fact, some retailers who started life in the online space are taking up spots on the high street and discovering that the move is a real boost to sales in-store and online.
Physical stores provide the opportunity for customers to experience the brand in a more dynamic way compared to online stores. In addition to the visual and sensory benefits of being able to physically handle products in a branded environment – a brand can also demonstrate its personality and values face-to-face through knowledgeable and helpful staff members.