The Online vs. Bricks and Mortar Debate: Where do Smaller Stores Stand?

In the retail world, online shopping and bricks and mortar shopping are usually viewed as diametrically opposed - an either/or proposition. And with this perception comes the often accepted myth that online is slowly but surely taking over. However, it is far more complicated than that, the myth largely based on assumption rather than fact.

A recent survey for UPS on how large a role mobile plays followed that same assumption - that shoppers preferred online shopping. The survey did find that that role is significant - and consumers want more advanced features, flexible shipping options, and hassle-free returns.

That being said, the survey findings said far more than that. Although mobile is growing, bricks and mortar stores have not lost their importance.

It seems as though the relationship is far more intertwined. Both online and bricks and mortar benefit from one another: “When purchasing online from a retailer that also has a physical store, 39% of consumers who make returns prefer to ship the product back while the overwhelming majority – 61% – prefer to return the item to the store. When they go to the store to make that return, 70% said they purchase an additional item.”

You can read more about the report here: http://www.consumeraffairs.com/news/online-shoppers-not-even-close-to-abandoning-brick-and-mortar-060415.html.

Add to this fact that some previously online-only stores are opening up physical locations and the complexities are even more visible.

Great, so major retailers are still holding their own against the online onslaught - evidently online shopping isn’t taking over as some believe. But where do smaller stores stand? Are mom and pop shops getting wiped out?

Again, the same seems to be true for mom and pop shops - they have not lost their relevance. Although facing more competition thanks to the growth of online shopping, consumers loyal to these stores remain so. It does mean that your strategy needs to meet this competition head-on, with marketing and merchandising methods that can help beat it.

For brands specifically there are other implications. If located in a mom and pop shop, or really any bricks and mortar location, you need to be sure that you are meeting the needs of your customers on a consistent basis, and retail audits can help you better determine what is working, what is not, and how to implement a plan to fix any issues.

Whether you are a smaller retailer dealing with online competition or a brand located at retail, Storesupport has the tools to help you succeed. Call us today at 1-877-421-5081.

Canadian Grocer on Deloitte Study and Online Shopping

There has been a lot said lately about the impact of online shopping on the retail world. With sales increasing each year, especially with events such as Cyber Monday and the draw of shopping in your sweats, many retailers are making changes to deal with the onslaught of consumers stopping by the website rather than the physical location. But what about the CPG industry - is it facing the same transformation as other retail sectors?

A recent release from Canadian Grocer addressed this issue in their post “Online: a big opportunity for CPGs?” According to the article, CPG industry executives are not so quick to jump on the online bandwagon because many of them believe that “consumers aren’t really interested in buying milk, toothpaste and other consumables on the web.”

Is this assumption correct? According to a Deloitte survey of consumers and CPG executives it isn’t. Instead of finding that consumers are not that interested in heading online to buy daily essentials, the survey found that consumers expect online sales to grow quite quickly over the next 3 years – far faster than industry executives think to be the case. When it comes to CPG, clearly consumers can be expected to follow the same trend as with other retail sectors.

So, with this in mind, do company heads think they are ready? The articles states that although “ninety-two per cent agreed that e-commerce is a strategic sales channel… only 3% of executives think their company has a clear understanding of e-commerce.”

Knowing that e-commerce within the CPG industry is bound to experience a spike in online sales over the next few years, there should be a focus on getting online channels up and running. Are you ready?

For more on the impact of online sales on the CPG industry and how you can prepare your company please contact Storesupport today by calling 1-877-421-5081, or visit us online at www.storesupport.ca.