Purchasing goods and services through a traditional brick-and-mortar retail location is known as physical shopping.
Why Physical Stores are Still Important for Retail ?
1. Customers who pick up in a store buy additional item
Because it’s quick and easy, curbside pickup and click and collect, also known as BOPIS (buying online and picking up in store), are highly preferred by customers and merchants. It attracts customers, is less expensive for retailers than delivery, and may result in more sales. 30 to 40 percent of customers who use this strategy, according to Forrester, make larger purchases at the store.
2. Consumers are more likely to buy a product they’ve seen in person
According to KPMG, the primary reason customers like to shop in physical stores is to see, feel, and test products before making a purchase. A physical location can allay concerns and aid in the sale’s closure. This can also lessen the possibility of a product being returned due to issues with size, color, etc.
3. Personalized customer service increases sales
Even with the rise of eCommerce, interpersonal communication is still crucial. According to data from RetailEXPO, over 60% of consumers believe that knowledgeable salespeople can affect their propensity to visit a physical store, and 75% of them are likely to spend more money after receiving excellent service in a store.
4. The brand experience is still physical at its core
The retail industry is highly competitive. While it can be difficult to stand out online, a physical store offers the chance to create a strong brand experience. These days, a brand can stand out from the competition by offering an experience that strikes a balance between convenience, excitement, and safety.
5.Stores can reduce the cost of returns
5–10% of purchases made in-store are returned by customers, compared to 15–40% of purchases made online. Additionally, because there are no shipping or transportation fees associated with online purchases, customers must pay more when they exchange or return items than they would in-person. This is in line with what customers want; according to the National Retail Federation, eighty percent of shoppers would rather return items to a store than have them shipped back.
6.Physical stores can be used as part of the supply chain.
The potential for logistics costs to skyrocket and eat away at margins is one of the issues with omnichannel retail. To counter that, some retailers operate “dark stores,” which are portions or all of their physical locations that are used as fulfillment and warehouse facilities. By improving distribution, this can lower the cost of inventory management and increase their reach over wider geographic areas.
7.Retailers get free market research about customers preferences and habits.
Retailers can identify trends with the use of data from online stores, but they can also discover a great deal about their customers by observing how they shop and engage with the merchandise.
8.Physical stores attract more traffic on online stores.
According to the International Council of Shopping Centers, when a physical store opens, website traffic rises by 37% the following quarter. Additionally, the opening of a physical store by a retailer results in a notable increase in online brand mentions and searches, both of which boost profitability.
Not only that, though. According to a Harvard Business Review survey, consumers who make both in-person and online purchases typically spend more overall, indicating that physical retail remains a key component of business strategies.
Advantage of physical shopping in store
Product Inspection: Before deciding what to buy, customers can physically inspect, feel, and try on products. Gaining practical experience enhances comprehension of the product’s dimensions, characteristics, and quality.
Instant Satisfaction:
Instant Access: After completing the transaction, customers don’t have to wait for shipping or delivery to take their purchases home. This is especially advantageous for people who require or desire the product immediately.
Social Communication:
In-Person Communication: Having in-person interactions with store employees and other customers is one of the benefits of shopping in person. This social component can improve the overall shopping experience and could be especially significant for specific groups of people.
Client Support:
Help and Advice: Customers are welcome to ask store staff for help and advice. Employees are able to suggest products,
Try Before You Buy:Opportunities for Trials: Customers can try or test some products, like electronics, clothes, or makeup, before making a purchase, which helps them make better decisions.
Regional Assistance:
Supporting Local Businesses: Buying locally helps sustain and expand the local economy by promoting small businesses in the community
Disadvantage of physical shopping
Restricted selection: Due to space constraints, physical stores can only carry a portion of the merchandise that is offered online. This may limit the options available to consumers, particularly for specialized or niche goods.
Time-consuming: Purchasing in physical stores can take a lot of time, especially if you have to visit several different places to locate what you’re looking for. This can be particularly annoying if you lead a hectic life.
Queues and crowds: Physical stores can get crowded, particularly on weekends and during holidays when shopping is most popular. Long checkout lines and navigating through crowds can be time-consuming and frustrating.
Restricted operating hours: Physical stores, in contrast to internet retailers, have set hours of operation that might not always coincide with your schedule. This may make it challenging for you to shop when it’s convenient for you, particularly if you have a demanding job or other obligations.
Impulse buying: Being in a physical store and surrounded by merchandise may cause one to make impulsive purchases. Spending excessive amounts of money on things you might not truly need or want can come from this.
Higher prices: Compared to online retailers, physical stores frequently have greater operating costs for things like rent, utilities, and staffing. Usually, the consumer bears the higher cost of the goods as a result of these costs.
Restricted availability: In physical stores, popular items tend to sell out quickly, leaving you without anything if you don’t act quickly enough. Online stores can restock products faster because they frequently have larger inventories.
Returning merchandise: physical stores can be inconvenient because it requires you to make a trip back there and may involve dealing with less accommodating policies than those of online retailers.