Clicks vs Bricks is a Myth…Clicks & Bricks is Reality

The new shopping reality is Omni-Channel, which is a totally synergistic relationship between physical and digital shopping experiences.

As popular as online shopping is, still the vast majority of all sales take place in a physical store. 

In fact, 85.7% of all retail sales are transacted in a physical, brick-and-mortar store.

Yes, some very well-known retailers are closing stores. But that’s not the story — not by a long shot.

According to new research from IHL Group, North American retailers will open 12,663 stores and close 8,828 stores in 2018, for a net increase of 3,835 store locations. The report found that a handful of retailers — 16 companies — represented 66% of the total number of store closings. For restaurants, 16 companies represented 74% of all net closings.

“We can’t emphasize enough that the closings have been driven by a handful of retailers, not the entire market,” IHL stated.

Brick and mortar stores continue to realize sales growth. After an exceptionally strong year of retail sales increases in 2018, brick-and-mortar retailers in the U.S. will see a year-over-year revenue increase of 3.04% in 2019 according to the IBM 2019 Retail Forecast.

Consider the following facts:

  • 7% of all retail sales are transacted in physical stores
  • 95% of all retail sales are captured by retailers with a brick-and-mortar presence.
  • Only 5% of all retail sales are attributed to pure-play online merchants
  • Two-thirds of consumers who purchase online use the store before or after the transaction.
  • 20% of all shoppers are store-only shoppers

Former pure-play only retailers are rapidly realizing that to maximize customer engagement and sales penetration, they must add brick and mortar stores to their distribution model. Notable former pure-play retailers currently opening physical locations include:

  • Amazon
  • Warby Parker
  • Casper
  • Bonobos
  • Athleta
  • Fabletics
  • Toms
  • BirchBox
  • Frank & Oak
  • And many more…

Popular online home furnishings retailer, Wayfair, recently announced the opening of their first-ever, physical store – and it is opening IN A MALL!

Scott Galloway, NYU-Stern School of Business Clinical Professor of Marketing, has been quoted as saying:  “E-commerce companies are either going to open stores or go out of business. Stores Are the New Black”