The rising popularity of brick-and-mortar stores has been well-documented over the past few years. From small boutiques to larger retailers, many companies have been reporting increases in sales as consumers continue to flock to their local stores. It’s not just a fad either: according to PwC’s recent Global CEO Survey, more than half of CEOs now believe that the future will be more about offline experiences than online ones.
So what are some of the reasons behind this shift?
- Tangible experience: Physical stores offer a tangible and often immersive shopping experience that online retailers cannot replicate. Customers can touch, feel, and try out products before making a purchase, which enhances the overall shopping experience.
- Personal interaction: Brick and mortar stores provide face-to-face interaction between customers and knowledgeable staff. This allows for personalized customer service, product recommendations, and the opportunity to address any concerns or questions in real-time.
- Instant gratification and “return avoidance”: With physical stores, customers can purchase and take home products immediately. This immediacy is particularly appealing for consumers who prefer to have their items right away, rather than waiting for delivery. The reality is, ecommerce is here to stay but it’s reached maturity. According to Business Insider, ecommerce growth is expected to slow to 1% per year through 2025. This growth has been capped in part by the fear, amongst 52% of buyers, of difficult online returns, as reported by eMarketer.
- Trust and credibility: Many consumers still value the trust and credibility associated with established physical retailers. They feel more confident about the quality and authenticity of products when they can see them in person and buy from reputable stores. Local retail is showing particular value to buyers compared to digital purchases. The Huff Post reported that over $9.3 billion would be directly returned to our economy if every US family spent just $10 a month at a local business.
- Social experience: Shopping in physical stores can be a social activity, allowing friends or family members to spend time together while browsing and making purchases. Some stores also create a community atmosphere by hosting events, workshops, or product demonstrations. A study by the University of South Florida showed that shoppers who drank coffee offered to them at the store spent 50 percent more time in that store and bought nearly 30 percent more items, when compared to shoppers who weren’t drinking coffee.
When it comes down to it, people like to shop in person. It’s exciting and gives the customer a sense of community with other shoppers. Retailers who are able to recognize these benefits and are willing to adapt their business model accordingly will be rewarded with loyal customers and increased sales. Plus, it’s just way more FUN!
