Dive Summary:
- While online retailers have successfully bested brick-and-mortar retailers with items that don't have to be displayed in a showroom, like books and electronics, some online retailers offering products including clothing and baby equipment are venturing into physical storefronts.
- Retailers who operate "purely" online don't have to pay rent like physical stores, but variable costs--such as luring in customers by buying ads linked to Google search results--take away much of that advantage.
- "Click and collect" programs offered by online retailers with small physical locations lower the cost of delivering goods, especially bulky ones, as well as money lost on returns.
From the article:
... For wares that do not have to be displayed in a showroom, online retailers are hard to beat. They killed Borders, an American bookstore chain, and Britain’s Comet, an electronics retailer. But it is easier to judge a shoe’s fit or an apple’s crispness in a real store. Shoppers who crave instant gratification will not get that online. Tradesmen are last-minute shoppers, which is why Screwfix, part of the Kingfisher DIY group, has so many shops. Car seats must be fitted and parents like to handle baby equipment before they buy it; hence Kiddicare’s expansion beyond a single flagship store. ...
