If you take a stroll down Abbot Kinney in Los Angeles, 5th Avenue in New York, or Fillmore Street in San Francisco, you’ll notice something clear: lots people are shopping in stores — and it’s not as if brick and mortar retail is exclusive to high density shopping destinations.
Although the “impending retail apocalypse” has grabbed headlines for years, consumer data continues to attest to a desire from consumers to touch, feel, and experience a brand or service in something more immersive than an online website. In an increasingly ephemeral world, companies and brands are finding physical locations to be an effective means of developing brand affinity and ultimately move the bottom line.
1. 79% of purchases are still made in-store
New research about retail consumption may signal that the way people shop actually hasn’t dramatically changed in the digital age. The study, which interviewed over 1,500 shoppers, found that consumers prefer shopping and in stores and, interestingly, prefer to restock the items they’ve previously purchased.
The data shows that experience and reliability are main factors driving purchasing behavior, and for many retailers, providing quality goods through brick and mortar locations is an essential piece.
2. Stores are the new marketing channel: An in-store visit can increase online purchase value by 64%
Warby Parker has famously moved from a pure-play e-commerce company to omnichannel, with brick and mortar locations popping up across the country. What founders Neil Blumenthal, Dave Gilboa, and Jeff Raider understand, is that the store of the future must become a marketing channel.
Whether it’s the final touchpoint in a consumer journey that started from an online engagement, or the initial discovery that will conclude online, diversifying the marketing channels for many brands has becoming opening brick and mortar stores.
The Harvard Business Review corroborates this idea, with their recent report finding compelling evidence that the retail store is an effective complement an online e-commerce experience. While online purchases tend to have a basket size 25% larger than an in-store purchase, when someone first visits a physical store and then purchases online, the effect is even more pronounced: Baskets are 64% larger.
3. 70% of consumers expect same-day delivery, and brick and mortar can be the best way to provide it
While it’s clear that an online and in-store touchpoint can benefit a consumer’s purchasing journey, an omnichannel can additionally benefit a retailers fulfillment abilities. Consumers are beginning to expect expedited delivery options when it comes to their online purchases, with over 70% beginning to expect same-day delivery, and retailers are taking note.
Marc Lore, the CEO of walmart.com, for instance, notes that Walmart’s biggest advantage is their 4,700+ stores, and their ability to quickly deliver product to online customers no matter where they are. It’s also a large reason that Amazon acquired Whole Foods and their nearly 500 brick and mortar locations.
Whether it’s a consumer-facing benefit or a logistical solution, retailers of all sizes are leveraging their omnichannel approaches to offer superior customer experience. From Walmart to Best Buy to Kohls, retailers of all sizes are partnering with Deliv and its drivers network to leverage their physical infrastructure to fulfill their online orders with same-day delivery.