In today’s retail landscape, the lines between online and offline shopping are blurring. Brands are no longer defined solely by their digital presence or physical footprint but by how seamlessly they integrate the two. This shift is driven by the reality that omnichannel retailing is no longer just a strategy – it is essential for building brand loyalty and deepening customer relationships. As digitally native brands like Gymshark, Glossier, and Myprotein expand into brick-and-mortar spaces, they are creating immersive brand experiences that resonate with consumers on a deeper level.
The rise of physical stores among online-first brands reflects a broader evolution in consumer expectations. Today’s customers demand a consistent, cohesive experience, whether they are browsing online, visiting a flagship store, or engaging on social media. Physical stores have become powerful tools for storytelling, connection, and loyalty-building.
One of the most compelling reasons for online retailers to embrace physical stores is the synergy between the two. Studies show that opening a physical location can triple a brand’s online sales. This is not simply about driving footfall, but about online and offline channels amplifying each other. For example, a customer who discovers a brand online might visit a store to touch, feel, and experience the product, only to return to the website for future purchases. This integration fosters trust and loyalty, turning one-time buyers into long-term customers.
Hybrid shopping experiences like “showrooming” and “click & collect” cater to the evolving needs of consumers who want the convenience of online shopping paired with the immediacy and tangibility of physical retail. By blending these worlds, brands can increase the likelihood of customers returning.
While e-commerce continues to grow, the cost of maintaining a digital-only presence is becoming increasingly expensive. The surge in digital advertising costs has made customer acquisition a costly endeavour. For example, Facebook’s average cost-per-click has more than tripled from $0.70 in 2018 to $2.25 in 2021. For many brands, the expense of digital marketing now rivals the cost of renting a physical store, making brick-and-mortar expansion a financially viable choice.
The rising cost of returns is another disincentive for online retailers. Physical stores allow customers to try before they buy, reducing return rates and improving overall satisfaction. By offering free in-store returns for online purchases, brands can also drive additional footfall and increase sales opportunities.
Physical stores offer something that digital platforms cannot replicate: a tangible, immersive brand experience. Gymshark’s flagship store on Regent Street is more than just a place to shop – it is a permanent brand billboard. Physical stores provide a unique opportunity for brands to deepen their identity and connect with customers on a more personal level by elevating their visibility and credibility.
In-store experiences, whether through personalised services, interactive displays, or hands-on product demonstrations, allow brands to tell their story in a way that resonates with their audience. For products that require tactile interaction, such as shoes, furniture, or cosmetics, this is crucial. By allowing customers to see, touch, and try products, brands can build trust and confidence, which translates into long-term loyalty.
Furthermore, physical stores provide a space for meaningful, face-to-face interactions that digital channels cannot replicate. Whether it is a knowledgeable employee offering personalised recommendations or a hands-on workshop that brings the brand’s values to life, these moments create lasting memories that further foster loyalty.
This is particularly important for younger consumers. According to a recent survey, 64% of Gen Z shoppers prefer to shop offline. Many crave the social and sensory aspects of in-person shopping, something that no amount of online browsing can replicate.
The transition from online to offline is not just about opening stores; it is about leveraging data to create smarter, more personalised experiences. This is one area where digitally native brands have a unique advantage: they can use insights from search queries, click patterns, and customer behaviour to inform their physical retail strategy. From choosing the right locations to curating product assortments and designing in-store experiences, data allows brands to tailor their approach to the needs and preferences of their target audience.
This data-driven approach not only enhances the customer experience but also gives brands a competitive edge in an increasingly crowded market. By understanding their customers on a deeper level, they can create omnichannel experiences that feel seamless and personal.
The rise of brick-and-mortar stores among online retailers reflects the future direction of the retail industry. In a world where consumers expect brands to meet them wherever they are, the most successful companies will be those that embrace an omnichannel approach. By blending the convenience of online shopping with the tangible benefits of physical stores, brands can create richer, more engaging experiences that drive loyalty and long-term growth.
Whether through flagship stores, pop-up shops, or strategic partnerships, the integration of online and offline retail is shaping the future of commerce. For brands looking to thrive in this new era, success lies in bringing the best of both worlds together in the most seamless way possible.
