REPORT: More etailers to open brick-and-mortar stores in 2015
More online retailers say they plan to explore the brick-and-mortar channel this year, according to a survey of 1,000 online retail professionals conducted by eBay.
About 75 percent of the respondents said they have a positive outlook for retail sales in 2015. Roughly 72 percent said they anticipate that online revenue will increase by 17 percent. But sales in brick-and-mortar stores will also be part of that growth. Some 14 percent of the respondents said they intend to make their initial investment in the in-store experience this year.
An additional 12 percent say they will pursue global brick-and-mortar expansion this year, and a further 11 percent will open pop-up shops to drive sales. Several online brands, including BaubleBar, Bonobos, JustFab and Warby Parker have invested in brick-and-mortar operations in recent years.
Perhaps this is no wonder. In-store conversion rates continue to be four times higher than online-only conversion rates, according to an ICSC report titled Shopping Centers: America’s First and Foremost Marketplace. “Consumers still prefer in-store shopping,” the report reads. “Ninety-four percent of total retail spending happens within the four walls of a physical store.”
In 2013 online retail sales came to some $263 billion, which accounts for only 6 percent of total retail sales, according to the Commerce Department. In-store sales, meanwhile, totaled about $4.3 trillion.
About 75 percent of the respondents said they have a positive outlook for retail sales in 2015. Roughly 72 percent said they anticipate that online revenue will increase by 17 percent. But sales in brick-and-mortar stores will also be part of that growth. Some 14 percent of the respondents said they intend to make their initial investment in the in-store experience this year.
An additional 12 percent say they will pursue global brick-and-mortar expansion this year, and a further 11 percent will open pop-up shops to drive sales. Several online brands, including BaubleBar, Bonobos, JustFab and Warby Parker have invested in brick-and-mortar operations in recent years.
Perhaps this is no wonder. In-store conversion rates continue to be four times higher than online-only conversion rates, according to an ICSC report titled Shopping Centers: America’s First and Foremost Marketplace. “Consumers still prefer in-store shopping,” the report reads. “Ninety-four percent of total retail spending happens within the four walls of a physical store.”
In 2013 online retail sales came to some $263 billion, which accounts for only 6 percent of total retail sales, according to the Commerce Department. In-store sales, meanwhile, totaled about $4.3 trillion.
