The last decade has seen online retail grow massively, spawning thousands of successful brands that are now well-known household names. For most of these businesses, internet advertising and the occasional street billboard have been enough to drive awareness and traffic to their websites.

However, as more companies flock to take advantage of the online boom, competition is increasing, and it is becoming harder for brands to get noticed.

This is prompting some forward-thinking businesses to consider a true omni-channel approach - they are still maintaining and investing in their website capabilities, but are also using physical selling space as well. Indeed, 29.6% of online retailers are now opening a high street store.

The return of retail to towns and cities has begun, and for many it is leading to great results.

Costs

As the online marketplace gets overcrowded, internet marketing costs have risen considerably. Both Google and Facebook advertising budgets must increase year-on-year to enable the same level of exposure. Having a physical store means that there is another channel to drive sales, and the pressure to keep piling money into AdWords is not as intense.

Since the online boom started, retail space in the UK has become more abundant, giving companies returning to the high street a better negotiating hand on rental prices and lease length.

Brand Experience

One of the main benefits of having a physical store is the improved brand experience that shoppers enjoy - it can help bring the virtual perception to life. When people interact with a brand on a more personal level, increased loyalty often ensues, which leads to big business benefits and lowers future customer acquisition costs.

There is no doubt that high-definition internet photos can look good, but nothing beats the in-person 'showroom' displays of a shop. Online giants such as Amazon and Missguided are already seeing benefits from their newly opened stores.

For many people, the ability to see, touch, and test products may well make all the difference incompleting a purchase.

Sales

The last few years have seen average online retail growth of 11.4%, but this is forecast to reduce to 4.8% by 2022. For sales to be maintained, and if possible increased, then businesses need to find new platforms to support their online strategy. An omni-channel approach is a good option to protect future sales.

It is widely accepted that for a purchase to occur, a customer needs a number of touch points oriented actions before finally buying. Having both an online and physical presence increases the number of touchpoints and can accelerate the sales process.

In the past, one definite bugbear of internet shopping has been the often complicated returns procedures. A physical store makes returning products much easier, while also giving an opportunity for great customer service.

Factors For Success

For any company that is considering a return to a retail store, there are a number of guidelines that may help enhance the chances of success:

• Make sure all products are the same price online and 'in-person'

• Negotiate flexible lease terms to see if omni-channel retailing works for you

• Ensure the brand experience continues into a physical selling space. A poor impression could hurt website traffic too

— Pall Mall Estates have a wide range of low cost commercial properties across the UK.

Take a look at our available spaces here or get in touch with our experienced team here.

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