{"id":27588,"date":"2018-11-28T13:50:00","date_gmt":"2018-11-28T20:50:00","guid":{"rendered":"https:\/\/paladinpointofsale.com\/retailscience\/?p=27588"},"modified":"2025-11-06T08:41:58","modified_gmt":"2025-11-06T15:41:58","slug":"brick-and-mortar-retail-is-still-relevant","status":"publish","type":"post","link":"https:\/\/paladinpointofsale.com\/retailscience\/home\/brick-and-mortar-retail-is-still-relevant\/","title":{"rendered":"Brick-and-Mortar Retail is Still Relevant"},"content":{"rendered":"

[et_pb_section fb_built=”1″ fullwidth=”on” _builder_version=”4.16″ global_colors_info=”{}”][et_pb_fullwidth_post_title meta=”off” featured_placement=”background” _builder_version=”4.16″ title_font=”|700||on|||||” title_text_color=”#FFFFFF” background_color=”rgba(255,255,255,0)” parallax=”on” text_orientation=”center” use_border_color=”off” global_colors_info=”{}”][\/et_pb_fullwidth_post_title][\/et_pb_section][et_pb_section fb_built=”1″ admin_label=”section” _builder_version=”4.16″ global_colors_info=”{}”][et_pb_row admin_label=”row” _builder_version=”4.16″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_text admin_label=”Intro” _builder_version=”4.16″ use_border_color=”off” border_color=”#ffffff” border_style=”solid” global_colors_info=”{}”]Samuel Clemens, better known as Mark Twain, once famously answered speculation that he had died during a visit to London with: \u201cThe reports of my death are greatly exaggerated.\u201d The same could be said of brick-and-mortar retail businesses. Despite the long-running news of the retail apocalypse, brick-and-mortar stores are alive and well<\/span><\/span>. The retail industry is changing, though<\/span><\/span>, and there are ways to join the evolution.<\/span><\/span>
\n[\/et_pb_text][et_pb_text admin_label=”Signs of Life ” _builder_version=”4.16″ use_border_color=”off” border_color=”#ffffff” border_style=”solid” global_colors_info=”{}”]<\/p>\n

Signs of\u00a0Life<\/h2>\n

[\/et_pb_text][et_pb_blurb use_icon=”on” font_icon=”A||divi||400″ icon_placement=”left” _builder_version=”4.16″ global_colors_info=”{}”]Established e-tailers\u00a0like Casper and The Honest Company are now marketing their products through Target stores.
\n[\/et_pb_blurb][et_pb_blurb use_icon=”on” font_icon=”A||divi||400″ icon_placement=”left” _builder_version=”4.16″ global_colors_info=”{}”]Google searches\u00a0for where people can buy products locally\u00a0have grown over 500% over the last two years.
\n[\/et_pb_blurb][et_pb_blurb use_icon=”on” font_icon=”A||divi||400″ icon_placement=”left” _builder_version=”4.16″ global_colors_info=”{}”]Shopify, the e-commerce platform provider, has opened a brick-and-mortar retail store in Los Angeles.
\n[\/et_pb_blurb][et_pb_blurb use_icon=”on” font_icon=”A||divi||400″ icon_placement=”left” _builder_version=”4.16″ global_colors_info=”{}”]E-commerce companies such as\u00a0Warby\u00a0Parker, Zappos, Bonobos, Casper and Amazon are opening brick-and-mortar retail stores.\u00a0Warby\u00a0Paker, which began as an online retailer of eyeglasses and sunglasses, plans to have 100 stores by the end of the year. Casper, an online mattress company that disrupted that entire industry, plans to have 200 of its own brick-and-mortar stores.
\n[\/et_pb_blurb][et_pb_blurb use_icon=”on” font_icon=”A||divi||400″ icon_placement=”left” _builder_version=”4.16″ global_colors_info=”{}”]During the 2017 holiday season, brick-and-mortar stores raked in 85% of all sales.
\n[\/et_pb_blurb][et_pb_text admin_label=”Not Dead Yet ” _builder_version=”4.16″ use_border_color=”off” border_color=”#ffffff” border_style=”solid” global_colors_info=”{}”]<\/p>\n

Not Dead Yet<\/h2>\n

Just as Sam Clemens refuted reports of his death, the brick-and-mortar retail industry\u2019s sales figures are showing it is not dead, either. The National Retail Federation reports that July retail sales hit 4.9%, a mark so high that it caused the NRF to adjust upward its annual growth projection. The federation also cited\u00a0a study by IHL Group\u00a0that shows for every company that closes its stores, two more are opening.<\/p>\n\n\n\n\n\n\n\n\n\n\n\n
Store Type<\/td>\n% Closed<\/td>\n% Opened<\/td>\n<\/tr>\n
Food\/Grocery<\/td>\n14%<\/span><\/td>\n34%<\/span><\/td>\n<\/tr>\n
Convenience Stores<\/td>\n15%<\/span><\/td>\n85%<\/span><\/td>\n<\/tr>\n
Superstores\/Warehouse Clubs<\/td>\n17%<\/span><\/td>\n83%<\/span><\/td>\n<\/tr>\n
Specialty Hardgoods<\/td>\n23%<\/span><\/td>\n49%<\/span><\/td>\n<\/tr>\n
Mass Merchandisers<\/td>\n24%<\/span><\/td>\n44%<\/span><\/td>\n<\/tr>\n
Drug Stores<\/td>\n30%<\/span><\/td>\n34%<\/span><\/td>\n<\/tr>\n
Department Stores<\/td>\n36%<\/span><\/td>\n26%<\/span><\/td>\n<\/tr>\n
Specialty Softgoods<\/td>\n36%<\/span><\/td>\n40%<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Source: IHL Group<\/span><\/p>\n

The most telling statistics from the study show that 16 companies are responsible for 66% of store closures, so the characterization of industry-wide depression is inaccurate.<\/p>\n

Retail\u2019s growth is\u00a0actually outpacing\u00a0the economy at large thanks to low unemployment and high consumer confidence.<\/p>\n

Some of the blame for the\u00a0rumored\u00a0downsizing of American retail can be placed on commercial developers as much as the retail merchants themselves. According to\u00a0Credit Suisse, the United States has more retail space than any other country in the world with more than 21,500 square feet per 1,000 people. That\u2019s more than double what Norway, the second most, has with 9,967 sq. ft.<\/p>\n

China (942 sq. ft.) and India (42 sq. ft.), two rapidly developing markets have minuscule brick-and-mortar retail footprints, comparatively.<\/p>\n

\u201cA brand that has 500 stores no longer makes sense in today\u2019s world,\u201d\u00a0Everlane\u00a0CEO Michael\u00a0Preysman\u202fsaid in an interview with Adweek.\u202f\u201cBut having 20 to 50 key locations that help bring an expression of the brand to life is very relevant for the customer.\u201d<\/p>\n

Everlane\u00a0is a San Francisco-based online clothing retailer that is among those e-commerce companies that began opening brick-and-mortar retail stores in 2017.
\n[\/et_pb_text][et_pb_text admin_label=”Changing Marketplace ” _builder_version=”4.16″ use_border_color=”off” border_color=”#ffffff” border_style=”solid” global_colors_info=”{}”]<\/p>\n

Changing Marketplace<\/h2>\n

Lessons learned from the evolution of retail are valuable to both brick-and-mortar retailers looking to remain relevant\u00a0in the marketplace\u00a0and e-commerce merchants seeking to open physical storefronts.<\/p>\n

Probably the most obvious takeaway from how the industry has changed for traditional brick-and-mortar retailers is the need to utilize technology to keep their current customers and attract new shoppers. And millennials are going to be many\u00a0of\u00a0those new shoppers. Now the largest adult generation, millennials are expected to spend $1.4 trillion by 2020, which will be about a third of total\u00a0U.S. retail expenditure.<\/p>\n

Millennials have been unfairly blamed for many of the behavioral changes in shopping that led to the restructuring of the U.S. retail landscape. The generation grew up with computers and online shopping, and they\u00a0have kickstarted the e-commerce revolution.<\/p>\n

However, research by behavioral marketing firm\u00a0SmarterHQ\u00a0\u00a0says\u00a0an incredible 50% of millennials not only go to physical stores, they prefer them as a primary means of shopping. Desktop computers (27%) and mobile devices (22%) combined\u00a0don\u2019t\u00a0reach the numbers that prefer brick-and-mortar retail stores. Additionally, 30% are\u00a0hunting for\u00a0bargains, 18% have a specific purchase in mind, 17% are researching, and 14% are simply\u00a0window shopping.
\n[\/et_pb_text][et_pb_text admin_label=”Changing Marketplace ” _builder_version=”4.22.0″ hover_enabled=”0″ use_border_color=”off” border_color=”#ffffff” border_style=”solid” global_colors_info=”{}” sticky_enabled=”0″]<\/p>\n

“The retail industry has been operating on the outdated assumption that boomers are shopping for deals primarily in-store and millennials are searching for deals mostly online,” says Greg\u00a0Petro, CEO of First Insight. “The behavior between these generations is evolving, and to benefit, retailers must recalibrate their approach to marketing, inventory and pricing to attract deal-seekers who may have been overlooked based on outdated perceptions.”<\/p>\n

[\/et_pb_text][et_pb_text admin_label=”How to Remain Relevant ” _builder_version=”4.22.0″ hover_enabled=”0″ global_colors_info=”{}” sticky_enabled=”0″]<\/p>\n

How to Remain Relevant<\/h2>\n

Millennials and the\u00a0following\u00a0generations that have grown up with the internet, look for the same dynamic interaction and personalization they get on the internet from brick-and-mortar retailers.<\/p>\n

E-commerce sites use the obvious technology of the internet to pander to their customers by collecting data on their past purchases. Brick-and-mortar retail stores can do the same thing by utilizing their point of sale data and digital business platform. Instead of website message box suggestions, brick-and-mortar retailers can text, email or snail mail special offers on products their customers\u00a0buy most.<\/p>\n

Physical stores can also use technology inside their buildings to entertain and inform customers. Video displays of new product demonstrations or DIY projects can help sell new products and increase customer loyalty. Active and dynamic customer incentive programs also inspire customer loyalty and attract new shoppers.<\/p>\n

Properly utilizing retail technology\u00a0means aligning online and in-store messaging and functions. Geofencing and in-store informational beacons use targeted text messaging to\u00a0reach out to\u00a0potential shoppers near your store and provide\u00a0product\u00a0information to customers inside your building.<\/p>\n

Offering free shipping or click-and-collect options put physical stores on par with any e-tailer. Click-and-collect also lets brick-and-mortar store owners\u00a0make additional\u00a0sales when\u00a0customers\u00a0visit to\u00a0pick up their online purchases. A\u00a0study by\u00a0OrderDynamics\u00a0says 51% of people who click-and-collect make unplanned purchases when they pick up their orders, spending, on average, an extra $40 per trip.<\/p>\n

[\/et_pb_text][et_pb_text admin_label=”Advantages of Brick-and-Mortar Retail ” _builder_version=”4.16″ global_colors_info=”{}”]<\/p>\n

Advantages of Brick-and-Mortar Retail<\/h2>\n

No matter how convenient online shopping has become, brick-and-mortar retail has an obvious advantage when it comes to fit, feel and sizing. Online shoppers can\u2019t\u00a0try on clothing and don\u2019t know how a new\u00a0phone or\u00a0tool feels in their hands.<\/p>\n

Instant gratification is another way brick-and-mortar retail surpasses e-commerce. According to Google, even though a shopper may spend weeks researching the purchase of a product, more than a third look to buy the item locally. Buying at local brick-and-mortar retailers also gives customers access to local customer service for those products.<\/p>\n

Expert advice and recommendations are other areas\u00a0that set brick-and-mortar store apart from e-tailers. Shoppers are pelted with so much information today, many are slow to accept recommendations from websites or even so-called\u00a0on-line\u00a0industry experts. Store owners and their sales associates have the advantage of in-person interaction to build understanding, trust and long-term relationships with customers.
\n[\/et_pb_text][et_pb_text admin_label=”E-commerce Gets Physical ” _builder_version=”4.16″ global_colors_info=”{}”]<\/p>\n

E-commerce Gets Physical<\/h2>\n

Most of the reasons listed above, especially the human\u00a0interaction,\u00a0are\u00a0why\u00a0major online retailers are moving into brick-and-mortar stores.<\/p>\n

“When you take the data that you collect from that customer in a retail location, you can get to know your members and guests much differently than you could online only,” Ron Harries, retail vice president of\u00a0Fabletics, an online sportswear company, said in a recent interview.<\/p>\n

Harries adds that his company not only gleans more and different customer information than it does online, the physical stores allow shoppers\u00a0to try on merchandise which makes it easier for them to order online the next time they decide to buy.<\/p>\n

Physical stores also give customers another touchpoint with their e-commerce retailer. It provides a location for returns, a place to receive additional orders, and to showcase new items. Amazon, which laid its foundation selling books online, has been opening brick-and-mortar bookstores for over a year. Those stores display Amazon\u2019s consumer electronics such as Kindle tablets and Echo, an Alexa-enabled smart speaker, along with their books. These e-tailers\u00a0are also taking the lessons they learned online and using them in their brick-and-mortar stores.
\n[\/et_pb_text][et_pb_blurb title=”Omnichannel shopping” image=”https:\/\/paladinpointofsale.com\/retailscience\/wp-content\/uploads\/sites\/2\/2018\/11\/Asset-124_280_Flat_Icons.png” icon_placement=”left” admin_label=”Omnichannel shopping” _builder_version=”4.16″ custom_css_blurb_image=”min-width: 100px;” global_colors_info=”{}”]Clicks-to-bricks companies are duplicating their online brands and recreating their online shopping experience in their physical stores<\/span><\/span>\u00a0to\u00a0<\/span><\/span>create a familiar and comfortable atmosphere for their customers.<\/span><\/span>\u00a0<\/span>
\n[\/et_pb_blurb][et_pb_blurb title=”Incorporating technology” image=”https:\/\/paladinpointofsale.com\/retailscience\/wp-content\/uploads\/sites\/2\/2018\/11\/Asset-196_280_Flat_Icons.png” icon_placement=”left” admin_label=”Incorporating technology” _builder_version=”4.16″ custom_css_blurb_image=”min-width: 100px;” global_colors_info=”{}”]Some of the new retailers allow customers to log in when they visit the stores\u00a0<\/span><\/span>much\u00a0<\/span><\/span>the same way they would online. This\u00a0<\/span><\/span>lets sales associates view their past purchases and make product recommendations in the same way their website<\/span><\/span>s<\/span><\/span>\u00a0do.<\/span><\/span>
\n[\/et_pb_blurb][et_pb_blurb title=”Personalized experiences” image=”https:\/\/paladinpointofsale.com\/retailscience\/wp-content\/uploads\/sites\/2\/2018\/11\/Asset-141_280_Flat_Icons.png” icon_placement=”left” admin_label=”Personalized experiences” _builder_version=”4.16″ custom_css_blurb_image=”min-width: 100px;” global_colors_info=”{}”]Online retailers pioneered using technology and sales data to create more personalized shopping experiences with product recommendations and specialized offers. This focus on the customer experience allows shoppers to browse efficiently and check out quickly and conveniently.<\/span><\/span>\u00a0<\/span>
\n[\/et_pb_blurb][et_pb_text admin_label=”Lessons Learned ” _builder_version=”4.16″ global_colors_info=”{}”]<\/p>\n

Lessons Learned<\/h2>\n

The way the retail marketplace has changed over the past few years has claimed\u00a0many\u00a0victims.\u00a0Large, lumbering companies that couldn\u2019t adapt have disappeared much like retail dinosaurs. Technology alone, though, isn\u2019t the key to the future. Using the latest retail technology, keeping up with trends, and focusing on quality person-to-person service is proving brick-and-mortar stores are still the center of the shopping universe.
\n[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.16″ global_colors_info=”{}”][et_pb_row _builder_version=”4.16″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_team_member name=”Brian Bullock” position=”Author” admin_label=”Brian’s Author Box” _builder_version=”4.16″ border_style=”solid” global_colors_info=”{}”][\/et_pb_team_member][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/p>\n","protected":false},"excerpt":{"rendered":"

Brick and mortar retail is alive and well. The landscape is evolving, though, and there are ways to stay ahead of the curve.<\/p>\n","protected":false},"author":13,"featured_media":28036,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[3,4],"tags":[],"class_list":["post-27588","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-posts","category-industry-news","et-has-post-format-content","et_post_format-et-post-format-standard"],"yoast_head":"\nBrick-and-Mortar Retail is Still Relevant - Retail Science<\/title>\n<meta name=\"description\" content=\"Brick and mortar retail is alive and well. 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