Traditionally, brick and mortar businesses were based off of street side businesses, selling goods and services directly to consumers. However, ecommerce has changed the retail landscape. It has upended many brick and mortars’ business models, creating an entirely new set of challenges. The result is that traditional stores are having a hard time competing in the digital economy. In order to remain relevant, brick and mortar stores need to reshape their business strategies to address the modern demands of consumers.
The key benefit of brick and mortar stores is that they offer an engaging, in-person experience. Customers can try on products, touch and feel items, and discuss them with an actual, live person before they purchase them. This allows customers to create a personal relationship with the store and the business. This can lead to increased sales, as well as a better chance to upsell.
Physical stores can also provide a more comfortable environment for shoppers. In addition, consumers can return items, solve problems, and find out if the product they bought is the right one for them. This also gives a sense of legitimacy to the business.
In addition to offering a personalised experience to consumers, brick and mortar stores have the added advantage of lower fulfillment costs. Unlike web-based companies, which typically use third party providers, brick and mortar stores are free of cost for shipping and fulfillment. In some cases, consumers may have to pay to rent a commercial space to run their brick and mortar stores. This is a significant expense, as the cost of renting a building is typically higher than the cost of maintaining an online store. In other cases, utility expenses are also added to the overhead costs.
While some consumers believe that brick and mortar stores lack legitimacy, a recent report from ServiceChannel has revealed that this is simply not true. In fact, the report found that over 70% of shoppers have negative experiences with physical retail stores. Using the findings of the report, businesses can avoid disappointing customers and ensure that their brick and mortar stores continue to thrive in the future.
In addition, the report identifies financial implications of brick and mortar store failures. As a result, businesses must weigh the advantages and disadvantages of brick and mortar stores against each other. In particular, the report details how to avoid losing money in a brick and mortar store, and provides a blueprint for how to improve the consumer’s overall experience.
The report also outlines some of the most common reasons consumers don’t visit brick and mortar stores. These include dirty bathrooms, disorganized shelves, and burned light bulbs. While these issues are certainly not uncommon, consumers are increasingly looking for convenience. By locating their brick and mortar store near their homes, offices, or schools, retailers can create an environment that will attract foot traffic.
While the growth of ecommerce has put brick and mortar stores at a disadvantage, retailers must continue to make efforts to improve their business. This includes using ecommerce platforms to attract and drive traffic to their physical stores.