Study: Physical stores have ‘halo’ effect on online sales
Retailers with physical stores experience higher Web traffic, attract new customers and increase brand awareness in the market.
That’s according to a recent ICSC study, “The Halo Effect: How Bricks Impact Clicks,” which found that opening a physical store leads to a 37% average gain in overall traffic to a retailer’s website and increases its share of web traffic within that market by an average of 27%. The opposite is also true as web traffic tends to fall when stores close.
The “halo effect” – commonly defined as the tendency for an impression created in one area to influence another – is radically transforming how retailers do business and innovate, according to ICSC.
“The clicks versus bricks debate is over,” said Tom McGee, president and CEO of ICSC. “We have long suspected that there is a direct and positive correlation between having both a physical and a digital presence, and the Halo Effect study confirmed this. What we are seeing now is a retail renaissance as both new and established retailers are investing in their stores and reinvigorating their physical presence.”
The study, the largest of its kind, found that physical stores have a material effect on the success of a brand not just through sales, but also in driving market performance and boosting customer perception. Customers in markets where emerging retailers have stores tend to consider those brands 69% of the time, versus 51% in general.
“The physical store is the hub of customer experience and service,” McGee continued. “Consumers today want to choose where and when they shop. Retailers that innovate and create a true omnichannel experience, leveraging the strengths of both physical and digital, will thrive.”
As physical stores act like “billboards” for brands, retailers can use both these stores and online retail to drive traffic to each other. When and where stores exist, consumers tend to use them: 84% of shoppers either shop exclusively in store (53%) or in combination with online (31%).
The report explores, and quantifies, how physical locations impact a brand’s digital presence, why that relationship matters, and why physical stores are essential to any successful retail strategy.
The full report can be downloaded here.
Tulip is definitely seeing this first hand. Retailers are starting to measure the stores impact on online sales in a variety of ways. One easy way, include an AssociateID in any CLienteling text messages or eMails sent from store associates. The online sales these workers are driving can and should be tracked.
Pottery Barn Kids in U.K. debut
Williams-Sonoma is bringing another of its brands across the pond.
Pottery Barn Kids is expanding into the U.K. via an e-commerce website and branded in-store shops at John Lewis & Partners. As part of its U.K. debut, Pottery Barn Kids will offer the exclusive West Elm x Pottery Barn Kids collection of nursery furnishings and décor. The collection brings together West Elm’s signature modern aesthetic and Pottery Barn Kids’ industry expertise and craftsmanship.
Pottery Barn Kids will begin wholesale operations in the U.K. with Pottery Barn Kids branded shop-in-shops opening in mid-October at three John Lewis locations in London, and online at Johnlewis.com. This is Williams-Sonoma’s second European wholesale venture with John Lewis, which operates 50 stores across the U.K., following its launch of West Elm in 2015.
No comments found
Another online disruptor tries out brick-and-mortar
Figs is giving the staid, $10 billion medical apparel industry a shot in the arm.
One of the fastest-growing companies in the United States has opened its first physical space.
Figs, the female-founded brand that’s disrupting the $60 billion staid medical apparel industry with stylish scrubs, has opened a pop-up on trendy Melrose Place in Los Angeles. The 1,800-sq.-ft. space features a lively, modern design, with a larger-than-life art installation, called The FIGS Medicine Cabinet, ideal for Instagram selfies. Other features include an embroidery workshop, special “night shift” shopping hours, a speaker series and other special events.
“Medical professionals have never had the opportunity to shop for their uniforms like they would regular clothes, despite wearing scrubs more frequently than any other article of clothing they own,” said Heather Hasson, co-founder and co-CEO, Figs. “We wanted our pop-up shop to feel lively and playful, but also modern.”
The pop-up carries Figs’ full line of men’s and women’s scrubs, along with compression socks, tote bags, loungewear, lab coats and outerwear. The company prides itself not only on its fashionable stylings, but also for its high-performance proprietary fabric that is both comfortable and functional, and incorporates such features as yoga waistbands and smart storage (pockets, zippers, hidden pockets). The inside of each garment has an inspirational saying targeted to modern healthcare professionals.
Founded in 2013, Figs set out to disrupt the medical apparel company, which has traditionally been dominated by low-end suppliers that sell to brick-and-mortar stores, by selling directly to consumers through its e-commerce platform that utilizes predictive analytics and lifestyle-driven imagery. To date, the company has raised $75 million from investors, including most recently $65 million from Tulco (the fourth-largest raise for a female-founded company in 2017). Figs also has a social mission. Its Threads for Threads initiative has donated over 500,000 sets of scrubs to healthcare providers in need in over 35 countries around the world.
Figs was ranked as Number 21 on Inc. Magazine’s Inc. 5000 ranking of the nation’s fastest-growing companies in 2018. It has experienced a 9,948% growth rate over the prior three years.
No comments found