Brick-and-Mortar Leans on Ecommerce

Brick-and-mortar stores have recently found success after integrating ecommerce shopping experiences into their design, reports The Wall Street Journal.

Market research firm GlobalData found that nearly 42 percent of ecommerce orders in 2023 involved physical stores in some capacity, up from about 27 percent in 2015. The report contends that shoppers increasingly browse items to purchase in person, and then turn to online platforms to order them.

“There was a narrative that as online grew, stores would become less relevant. But it hasn’t worked out that way,” said Neil Saunders, managing director at GlobalData. “In many ways, the store is still the heart or hub of retail.”

The increased demand for physical locations means that retailers are on track to open more stores than they close in 2024, the third consecutive year of growth, according to research firm Coresight Research. Many retailers also found that, without physical locations, it is too difficult to attract and retain customers, according to the report. Additionally, they use the brick-and-mortar stores as pickup and drop-off points to help lower labor, packaging, and shipping costs associated with online orders. Full Story (Subscription Required)