Why You Still Need A Brick and Mortar Storefront in 2021

Why You Still Need A Brick and Mortar Storefront in 2021
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Despite the surge in online shopping during the pandemic, most consumers still value the experience they can only get shopping in-store. A recent survey revealed that 82% of shoppers say that seeing, holding, or demoing a product in-person made them more likely to actually go through with a purchase.

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In fact, four out of every five retail dollars are being spent in-store. That means the majority of customers still enjoy a tactile, in-person shopping experience.

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It’s Still Important To Have A Brick-And-Mortar Storefront

Even in 2021, it’s still important to have a brick-and-mortar storefront for your business. Here’s some more key reasons why.

Consumers Spend More In-Store

Customers spend more when shopping in-person compared to online. One study found that over 70% of in-store customers spend over $50, and more than a third spend over $100. Compare that to just 54% of online shoppers who spend over $50, and a comparatively paltry 21% who spend more than $100.

The Human Touch & Instant Gratification

In-person interaction remains an advantage to in-store shopping. Good sales associates can answer any questions about products and give good recommendations. Another great advantage is the instant gratification consumers feel when they’re able to bring their purchases home and enjoy their merchandise immediately.

Credibility & Brand Awareness

Having a physical storefront adds another layer of credibility to a business especially for customers not familiar with the brand or who might be skeptical about making purchases online. It can also provide a huge boost to a brand name, especially if the storefront is located in a high-traffic area.

Impulse Buying

Consumers love adding last-minute, unplanned items to their shopping carts when they shop in-store. 11% more men and 12% more women said they were more likely to make spontaneous additions to their shopping carts when inside of a physical store.

With consumers continuing to shop at brick-and-mortar establishments, the brick-and-mortar marketing experts at Zenreach make it possible for businesses to gain better understanding of their needs and shopping habits.

Here’s what John Kelly, CEO of Zenreach, has to say about this trend:

"As consumers begin to return to physical stores in greater numbers, and as new technologies, like ours, enable retailers to identify and follow their most valuable customers across the online and offline experience, we will likely see more retailers adopting an integrated approach to the ecommerce and brick-and-mortar parts of their businesses." 

Jacob Wolinsky is the founder of ValueWalk.com, a popular value investing and hedge fund focused investment website. Jacob worked as an equity analyst first at a micro-cap focused private equity firm, followed by a stint at a smid cap focused research shop. Jacob lives with his wife and four kids in Passaic NJ. - Email: jacob(at)valuewalk.com - Twitter username: JacobWolinsky - Full Disclosure: I do not purchase any equities anymore to avoid even the appearance of a conflict of interest and because at times I may receive grey areas of insider information. I have a few existing holdings from years ago, but I have sold off most of the equities and now only purchase mutual funds and some ETFs. I also own a few grams of Gold and Silver
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