{"id":90320,"date":"2017-01-06T13:47:03","date_gmt":"2017-01-06T18:47:03","guid":{"rendered":"http:\/\/www.ict-pulse.com\/?p=90320"},"modified":"2017-04-07T19:06:31","modified_gmt":"2017-04-08T00:06:31","slug":"brick-mortar-stores-day-age","status":"publish","type":"post","link":"https:\/\/ict-pulse.com\/2017\/01\/brick-mortar-stores-day-age\/","title":{"rendered":"Brick and mortar stores: are they truly necessary in this day and age?"},"content":{"rendered":"

A brief examination of the pros and cons of physical (brick and mortar) stores and virtual ones.<\/span><\/i><\/p>\n

\u00a0<\/span><\/p>\n

Over the past few days, online retail giant, <\/span>Amazon.com<\/span><\/a>, has been in the news with regard to its plans to open a physical bookstore in New York City. The store would not be the company\u2019s first: other have already been opened on the west coast of the United States, and so speaks to a broader strategy. However, this approach seems to fly in the face of all we had been led to believe with respect to the death of brick and mortar stores .<\/span><\/p>\n

Over the past several years, brick and mortar stores have been on the decline. Globally, many of the large retail chains have been closing stores and paring down their footprint.. Further physical stores are competing directly with online stores, which can sell their products cheaper. In the Caribbean, for example, it can still end up being cheaper to purchase certain goods online \u2013 even when shipping costs and customs clearance fees are also factored in. As a result, entrepreneurs and potential business owners are more inclined to think long and hard weighing the pros and cons of establishing a brick and mortar store versus other options.<\/span><\/p>\n

Startup costs<\/span><\/h3>\n

Generally, the start-up costs for a physical store, or office, are considerably more than for an online presence. Securing the premises, decorating it, and acquiring the goods that will be sold, are not only expensive, but also can be very involved processes for which external professional expertise may be essential. In setting up an online store, there are still expenses – such as acquiring the domain name, building the website and securing electronic payment functionality. However, due to the global competition that exists in that space, a broad range of offerings and price points are available.<\/span><\/p>\n

Overheads, overheads<\/span><\/h3>\n

Following from the initial startup costs, the ongoing costs to maintain a brick and mortar store tend to be considerably more than an online one. In addition to the storefront, stock and inventory, along with the space in which they are housed must also be maintained and staffed. On the other hand, for an online store, the storefront is virtual, and similar costs might be incurred with respect to maintaining stock and inventory; though it may be possible for some cost savings to be realised.<\/span><\/p>\n

Convenience<\/span><\/h3>\n

Most physical shops are open for fixed hours, which may be inconvenient for the typical shopper, who might be otherwise engaged during those times, and may have to make a specific effort to visit a store during its opening hours. On the other hand, online retail platforms tend to offer 24\/7 access, convenience, and easier searching and browsing for products. As a result, they are available at the customer\u2019s convenience and not the other way around<\/span><\/p>\n

Customer Experience<\/span><\/h3>\n

While there may be many benefits, especially cost-related ones, in having an online storefront, physical stores outshine online ones in terms of providing customers with sensory information and experience. With physical stores, customers can try, hear, feel, taste, smell or even try on (or try out) a product before making a purchase.<\/span><\/p>\n

In summary, though online stores tend to offer several benefits when compared with brick and mortar stores, they both have their owns set of pros and cons. Amazon is using its stores to enhance the customer experience: visitors being able to interact with its (Amazon) products, along\u00a0select others that they carry. Accordingly,\u00a0there is no one-size-fits-all strategy. Business owners need to weigh the pros and cons, based on their needs and imperatives.<\/p>\n

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 <\/p>\n

Image credit: \u00a0Rebecca Schley<\/a> (flickr)<\/em><\/p>\n

__________________<\/p>\n","protected":false},"excerpt":{"rendered":"

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