Why online brands are finding value reclaiming bricks and mortar
- Impulsepop Writer
- Mar 27, 2023
- 3 min read
Predictions about the Retail sector have been invariably pessimistic, dampened by the departure of countless beloved brands from the UK’s high streets. The fashion brands M&Co, Peacocks and Joules are just three that went into administration in 2022. However, there’s a chink of light, signalling that some retailers ‘aren’t for turning’ the keys in just yet.
Retail is not out of the woods by any stretch of the imagination
A quick scan through UK Retail closures published by the Centre for Retail Research, reveals that severe economic pressures are still buffeting the sector. But there are signs of exit slowdown. This trend, first highlighted in early 2022, and recently corroborated by the Local Data Company report, suggests that the UK’s retail sector has managed to ride the storm more successfully than in previous years, with net store closures down for the first time in seven years. ‘Despite the bleak economic outlook, 2022 saw the gap between openings and closures narrow to its smallest since 2016. Net change in units (openings minus closures) across GB was -3,365 units over 2022, a 57% year-on-year decrease from the 2021 figure of -7,902.’ Source: Local Data Company.
Blending online and offline Store Retailing
High street retailers with broader shoulders have taken the opportunity to extend their brand portfolio, with Next taking on Joules and JoJo Maman Bebe. In comparison, Fraser Group brought the ailing online brands – Misguided and IsawItFirst.com into the fold. What’s clear from both operatives is the strategic focus on adopting an omnichannel business environment, based on a realistic interpretation of the customer journey. Staying ahead appears to require a balance of online and offline representation. But why?
These brands, rescued from consignment to the retailing history books, had strong brand identities but perhaps crucially struggled to:
Attract, convert and retain their share of the target consumer.
Differentiate their offering from competitors with equally compelling brand stories.
Offer the flexibility and convenience we’ve all come to expect.
Showcasing product features and benefits through a digital medium has its limits and communicating very subtle quality or customer service cues can be more difficult for premium or luxury, ‘online only’ players. Hence, we’re seeing a small but steady trickle of digitally native brands traversing from online-only environments and instead embracing all the benefits that the physical space can offer the multi-channel consumer. This hybrid existence is called ‘clicks to bricks’ or a ‘clicks and mortar’ format.
What are the virtues of physical retail store space?
A store footprint creates the space to liberate the human senses. Brands can showcase products more creatively, offer enhanced interactivity and navigate shoppers towards primary locations and hot spots – controlling traffic and flow. Deeper connections are triggered when our senses are stimulated, and face-to-face interactions – particularly around customer service issues, are unbeatable. It’s why you’ve never smiled back at a welcome greeting from a chatbot pop-up.
Forbes magazine identified this trend in channel expansion crossing the virtual divide in 2015, ‘Moving from an online platform to bricks & mortar is a growing trend with younger online brands, and one that could reshape the future shopping centre/mall dynamic.’
‘These stores stand out because they have built an established customer base online and plan to continue growing shopper numbers by expanding into physical storefronts.’
Digital native brands explore physical stores
In February 2023, The Times featured a cohort of online clothing brands, Gymshark, Manière De Voir’ and END, who are giving reclaimed bricks a whole new look – further evidence that UK brands are following the trajectory of their US counterparts. Breaking free of their online shackles, they are on a mission to build trust and engagement with their audience by delivering a more immersive experience, and taking the opportunity to establish test and learn initiatives – from setting up pop-up shops, to leasing pilot stores in city locations.
The Newcastle fashion retailer END opened its fourth shop in Manchester, taking a site last used by Paperchase said, “We continue to see high-quality, experience-led, physical retail as being an important part of our strategy.” Source: The Times
The lure for the consumer is the ability to interact with the product before purchase – and this ‘showroom’ concept is where our design, merchandising and display or shop fitting experts create eye-catching window displays that bring your brand to life and more customers through your door.
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