Pure play ecommerce retailers recognise the value of a bricks-and-mortar presence

Pure play ecommerce retailers, which focus exclusively on online channels for sales, are recognising the value of having a physical presence.

While online retail still constitutes a significant portion of overall retail sales, with the Office for National Statistics stating at the end of last year that online sales are up by almost a fifth (16.2%) when compared to their pre-pandemic level in February 2020, over the last year we have seen these volumes plateau, with online shopping today accounting for just over a quarter (25.7%) of total retail sales (compared to its pandemic peak of 37.8%).

In response, we are seeing brands that have previously been purely ecommerce based adopting an omnichannel approach with brick-and-mortar presence to future-proof their existing online model, a trend that has really come about since the pandemic. Consumers are increasingly seeking more tangible shopping experiences - at least for certain goods - and fortunately the physical retail environment is more favourable now than it has ever been, with fixed occupational costs down.

Towards the end of last year, children's licensed clothing retailer Character.com opened its first store in McArthurGlen Designer Outlet in Bridgend, Wales. Founders Stephen and Karen Hewitt claim that, whilst online channels still play a big part in the business, physical retailing offers an opportunity for diversification and thus enables them to future-proof their business model. The brand is betting on bricks, with Savills assisting with their plans for expansion entailing the opening of three additional stores, each spanning approximately 2,500 square feet.

In-store retail also drives higher conversion rates than ecommerce. Represent, the premium menswear brand which launched as a limited company in 2014, opened a 1,000 sq. ft space in Selfridges on Manchester's Exchange Square in 2022. The main driver for this being that physical retail offers an experience that can't be replicated online, with co-founder George Heaton emphasising the importance "wanting people to feel the product, be inspired by what it is and the brand's story".

Additionally, we are seeing this trend ripple through various retail sub-sectors such as beauty; Avon is currently seeking "neighbourhood communities" rather than high street locations. The cosmetics company had to review its 137 year-old strategy, when the pandemic disrupted its door-to-door sales model.

With this trend expected grow, it points to the fact that omnichannel retailers have more ways than ever before of engaging with customers, which builds in resilience in an ever-changing retail landscape.

Further information

Physical retail fights back: how high streets are regaining their purpose