Picture your ideal workday. Does it involve chatting with customers, organizing items into attractive displays, and collaborating with your retail neighbors on a fun community event? What about conducting inventory counts, training staff, and keeping a series of licenses and permits up to date? If the first list of things thrills you enough to make the second list of things feel worth it, you might consider opening a brick-and-mortar retail store.
What is a brick-and-mortar retail store? It’s what you might think of as a traditional retail shop: a physical space where you sell items. In this article, we’ll explore the rewarding, challenging, and surprising aspects of running a physical store.
The rewards of owning a brick-and-mortar store
In a world increasingly dominated by online transactions, the charm and authenticity of a brick-and-mortar store can bring profound personal and professional satisfaction to business owners.
Community presence
You and your store can become a beloved part of your community by hosting local events and gatherings, getting to know your neighbors, and offering a much-needed selection of new products to the area. This presence helps you build strong, personal ties and loyalty and support from locals.
Sensory merchandising
With the right music, inviting scents, and hands-on displays, you can give your customers a multisensory shopping experience they can’t find online. This kind of immersive atmosphere really taps into emotions and memories, making your store not just a place to shop, but a memorable destination they’ll want to return to.
Creative displays
With creative window and shelf displays, you can weave your brand’s story into every detail, catching the eye of passersby in a way no website banner can. These vibrant displays not only captivate potential customers but also lure them into your store to discover new products, seasonal treasures, or exciting promotions.
Spontaneous customer interactions
In your store, every impromptu chat with a customer could lead to insights, unexpected sales, or deeper connection. These spontaneous conversations aren’t just a highlight of someone’s day—they also give you invaluable real-time feedback to help you fine-tune your business strategy in meaningful ways.
Immediate problem-solving
You have the unique ability to address customer concerns right away, providing instant solutions, exchanges, or personalized help that fosters trust and loyalty. Being able to respond immediately not only boosts customer satisfaction but also helps prevent negative reviews, keeping your store’s reputation strong.
The challenges of owning a brick-and-mortar store
While owning a physical store can be incredibly rewarding, it’s crucial to approach this venture with eyes wide open. Brick-and-mortar retail comes with its own set of unique challenges that set it apart from e-commerce businesses.
High fixed costs
Running a physical store comes with its share of fixed costs like renting or buying a building, utilities, insurance, and sometimes property taxes—expenses you wouldn’t have with an online-only shop. These costs add up, and you’ll face them whether sales are booming or not, which means you need to do some careful financial planning.
Staffing requirements
Physical stores need a team to manage daily operations, help customers, process transactions, and keep the store looking great. Finding, training, and keeping the right staff can be quite an investment in both time and money.
Limited by time and geography
Unlike online stores that are always open, physical stores have set hours, which can limit your sales opportunities. And the customer base for a physical store is limited to those in your local area, whereas anyone, anywhere can shop online.
Navigating the permit maze
Opening a brick-and-mortar store involves more than just finding the perfect location and stocking shelves. You’ll need to navigate a complex web of permits and licenses. These can include a resale certificate, zoning permits, health department certifications (especially for food-related businesses), signage permits, and fire department approvals.
Physical maintenance and presentation
Even if you don’t need to completely renovate a space before opening, keeping your physical space tidy, organized, and visually appealing is no small task. It can require ongoing attention and investment, but it’s crucial for attracting and keeping customers.
Brick and mortar vs. e-commerce
If you’re planning to start a retail business, deciding whether to sell products strictly online or in a physical store is a big decision. It’s essential to understand the nuances of each option to make the right choice for you and your business. So, let’s look at some of the unique opportunities and difficulties of each model:
Upfront costs
Opening a physical store often requires a hefty upfront investment including rent, utilities, store fixtures, and ongoing maintenance. With e-commerce, you can start small and scale up, and you have more flexible options for inventory storage. Don’t forget about building a secure web store and processing online orders —those costs can add up quickly!
Thefts vs. breaches
With a brick-and-mortar store, you’re dealing with old-school security issues: shoplifting, cash-handling risks, and even the occasional counterfeit bill. E-commerce presents a whole new set of challenges like cybersecurity threats, data breaches, and online fraud.
Expansion requirements
When you reach the point where you can grow your brick-and-mortar retail business, you might consider opening a new location, franchising, or testing the waters with pop-up shops. If you sell only online, you can expand your product lines or enter new geographic markets without needing a physical presence.
The returns game
In a physical store, returns are immediate. It’s face-to-face, and you have the chance to turn that return into an exchange or even an upsell. E-commerce returns don’t provide that personal touch and involve shipping logistics.
Local vs. global marketing
Brick-and-mortar marketing is about becoming part of the local fabric, both offline and online, through SEO strategies. With e-commerce marketing, you have the potential to reach an international audience, but standing out in the crowded digital space is a challenge.
The omnichannel approach
For many retailers, the best of both worlds is having a physical retail store and a robust e-commerce presence. More and more consumers have come to expect a seamless shopping experience that combines online research and in-person browsing, and retailers are adapting their strategies.
Imagine this scenario. A customer browses your products online, checks out reviews, and then pops into your store to see the item in person. They decide to buy it, but the color they want isn’t in stock. No problem—your employee can order it online right there and have it shipped to the customer’s home. That’s omnichannel retail in action.
Here are some tips to effectively marry e-commerce and brick-and-mortar:
- Offer customers the option to buy online and pick up in-store. This is popular with customers, and it drives foot traffic to your physical location and can lead to additional in-store purchases.
- Allow customers to return online purchases in-store. This policy is more convenient for shoppers and creates opportunities for exchanges or new sales during the return process.
- Use your physical space to showcase select products and provide in-store tables to browse the full catalog online. This approach lets you curate your store’s look while still offering the extensive options of online retail.
- Ensure your in-store staff are knowledgeable about your online offerings and can assist customers in navigating between channels seamlessly.
- Use data from both online and in-store interactions to provide personalized recommendations and offers across all channels.
Types of brick-and-mortar stores
From quaint boutiques in walkable neighborhoods to sprawling department stores in city centers, brick-and-mortar retail offers a wide array of shopping experiences. Wondering where your business might fit in the retail landscape? Let’s look at some of the different kinds of brick-and-mortar stores.
Specialty boutiques
These stores focus on a specific niche or product category, offering curated selections often unavailable in larger retail outlets.
Example: Kido Chicago is a children’s boutique that goes beyond just selling products. It offers a carefully curated selection of toys, books, and clothing, with a focus on diversity and inclusion. The store also hosts events and classes, which makes it a community hub for families.
Concept stores
Concept stores blend retail with lifestyle experiences, often combining shopping with cafés, galleries, or event spaces.
Example: Merci Milo is more than just a toy store. It’s a whimsical space that feels like stepping into a storybook. The store offers a mix of vintage and modern toys, books, and decor, creating an enchanting shopping experience for both children and adults.
Multi-brand retailers
These stores carry a variety of brands under one roof, offering customers a wide selection of products within a specific category or lifestyle.
Example: Festive Collective showcases a variety of independent makers and designers. The store offers a range of products from home decor to jewelry, all with a focus on unique, handcrafted items that bring joy and celebration to everyday life.
Experiential retail stores
These stores prioritize creating memorable experiences for customers, often through interactive displays, workshops, or unique store layouts.
Example: Big Night is a kitchenware and entertaining essentials store that goes beyond just selling products. It offers a space where customers can learn, taste, and experience the joy of hosting. The store frequently hosts cooking demonstrations and tasting events, turning shopping into an engaging, social experience.
Design-focused stores
These boutiques place a strong emphasis on aesthetics and design, often showcasing cutting-edge or unique home goods and lifestyle products.
Example: The Completist is a design lover’s paradise. The store offers a carefully selected range of gifts, stationery, and cards from husband-and-wife duo Marko and Jana. With its carefully considered, vibrant look, The Completist blurs the line between retail space and design exhibition.
Each of these store types demonstrates how brick-and-mortar retail can offer unique, engaging experiences that go beyond simple transactions. Whether it’s through community building, curated selections, or immersive environments, these stores show the enduring appeal of physical retail in the digital age.
