Written by Albert J. Haddad
Online Companies are seeking Storefronts to Create a New Customer Experience
In the online retail space, there is a new trend that relies less on online interaction. Retailers are starting to find physical retail space and creating brick and mortar experiences for their customers.
People continue to ask if we are seeing a shift from online retail to a more brick and mortar approach.
The answer I like to give is this: it’s not so much of a shift from one side of the business to the other, but more of an accommodation for their clientele. A present day and necessary move toward brand awareness.
According to Forbes:
- Forbes predicted by 2020 there wouldn’t be a dichotomy between brick and mortar and online retail, they simply will just refer to it as “retail.”
- Clothing brands such as UntuckIt, Indochino, Bonobos, and others are opening store fronts to accommodate their clients.
Forbes sees this growth as a logical next step as online retailers continue to grow their brands. There’s a sense of instant gratification that consumers experience by being able to physically touch and see products before buying them.
The crossover between online retail and brick and mortar used to be seen through various pop-up shops that resided in shopping malls. Today, these companies are looking to create a more recognizable urban footprint, creating shops that are housed on already established in-vestment properties.
Placing a group of stores on investment properties is all about the tenant mix. Stable tenants create a stable asset for the investor. Seeing this trend occurring an investor could set a property up with great tenants and see the value of their asset grow.
The question we should be asking ourselves with this accommodation is how does it affect the consumer? This confluence of commerce is a welcomed site for the consumer. These stores aren’t looking to be large and ubiquitous buildings, but simply established retail centers that are meant to reinforce their brands.
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