If we take a look back over the last couple of years it does appear that for most retail brands e-commerce has been the priority. The pandemic had much to do with this as a way of allowing brands to survive. However, things are changing and what we are now seeing is a significant shift away from clicks and back to bricks.
This is perhaps most notable in the world of pure online retail. In most of the prime retail destinations on a global scale what is clear is that many brands that were online only are now taking the first steps and opening up flagship retail stores. This includes making significant investment in the full brand experience, customer service and fit-outs.
Bricks are taking centre stage
This isn’t a wholly new trend, though. In 2013, the footwear brand Allbirds opened stores in two prime locations in the US. In the years that have followed some of the biggest names in online retail like Amazon and Fabletics have also opened physical locations.
This isn’t just a trend in the US. Here in the UK in the last 12 months we have seen brands like Gymshark open their debut store. Plus, the menswear retailer Manière De Voir has also announced the plans for a flagship storefront.
This is vastly exciting new and heralds a beginning of a shift that is likely to filter down through the global retail markets. Those companies who have had success opening their first stores in their own country have quickly chosen to open others in different countries in order to tap into the market there.
Why the shift from clicks to bricks?
There are a number of reasons for this shift from online to physical stores. Perhaps the most interesting is that for all of these brands the costs associated with gaining online customers have increased dramatically in recent years. The addition of flagship stores to the brands has offered customers aspirational destinations. Here, they are able to create a physical connection with the brand. When this physical location is in a high profile location like Fifth Avenue or Oxford street this offers the brand a chance to utilise some of the highest levels of footfall found anywhere in the world. This, in turn helps to elevate their brand.
Are physical stores more successful?
Bricks and mortar stores can also help to drive higher rates of conversion and increase the volumes of average transactions. They can do this through the expertise of the staff that they employ in-store, as the personal service is part of the overall customer experience. The option of a trip to a physical store offers consumers the ability to try before they buy; an option that is beneficial to both customer and retailer.
There are a growing number of brands who are seeing the value of at least having physical stores to bolster their online presence, and this means that the shift is likely to continue. The omnichannel approach is one that more brands are beginning to adopt, and those that have already made this move are seeing the benefits.
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