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Clicks To Bricks
If you have never shopped online you’re either my grandmother or lying. It is very often the easiest, cheapest, and fastest way to get something you want. However, it is very rarely the most efficient way to get something you need. The rise of e-commerce is undeniable, but if it is the future of all shopping experiences- why are online retailers quietly building physical presences?
The Numbers
If e-commerce is killing retail, it might want to re-up on ammo. The chart below outlines purchases made in stores versus online in 2018. As you can see, in store sales consistently beat online sales year over year.
E-commerce represents only 10% of retail purchases, the other 90% of shopping is done on-site in physical stores. Keeping in mind that sobering statistic, it is not a huge surprise to see digital first (brands that started as online only stores) opening physical locations. For example, Away Travel is a brand that initially exclusively sold their products online. For two years the (brilliant female) founders focused on building the brand and online presence. In 2018, however, they decided to open a physical store in Boston’s Seaport neighborhood. A move like this requires huge upfront capital, a different business model, a new marketing strategy, and significantly more variable costs (hiring store clerks, keeping the lights on, stocking the shelves) than their…
