Opening a Physical Store: The Appeal of a Physical Store in an Online World

Opening a physical store is an exciting venture for any entrepreneur. It offers the chance to build a personal connection with customers and create a tangible brand experience. Online stores continue to grow in popularity, but in 2023, over 70% of UK retail happened in physical stores.¹ Meanwhile, e-commerce accounted for over 19% of retail sales worldwide. The attraction of a retail store in a busy area remains strong. It attracts those who appreciate hands-on shopping experiences.² 

For many retail businesses, balancing online and brick-and-mortar stores is critical. It allows them to expand their reach and meet diverse customer needs. Research shows that when a retailer opens a new physical store location, traffic to their website increases by 37% the following quarter.³

Laying the Groundwork: Planning and Preparation

The process of opening a physical store begins with thorough planning and preparation. One of the first steps is developing a strong business plan. This should outline essential aspects of the business structure. It will also need to include projected financials, and strategies for success. A strong business plan is also necessary if you're seeking a business loan. This is because lenders want to see clear evidence of profitability and sustainability. It also helps to open a dedicated business bank account to manage finances. This way you can ensure that personal and business transactions are kept separate.

Understanding Your Market: Carrying out Market Research

Market research is a vital step that helps you get to know your target market. Explore demographics, shopping habits, and local competitors. This way you can fine-tune your product offerings and how you engage with customers. If you already have an online store, this research can be especially useful. It will guide you to create a seamless connection between your online presence and your brick-and-mortar store. You'll be able to ensure your in-person offerings reflect the brand identity you've built online. Market research also gives you valuable insights into where to set up your physical store. It can help you choose a location that's easy for your target market to reach and that matches your brand's personality.

Attracting Customers: Developing a Marketing Strategy

Once you've chosen your location, it's time to develop a marketing strategy to bring customers through your doors. A blend of online and offline marketing efforts is essential for a physical store to build brand awareness and increase footfall. 

Traditional marketing efforts remain important. Here are a few examples:

• Eye-catching signage.
• Adverts in local newspapers.
• Partnerships with nearby businesses.

But don't forget to add digital marketing strategies such as:

• Social media promotions.
• Targeted online ads.
• Local SEO.

These can help connect your physical store with online shoppers who are curious to visit in person. With the rise of online shopping, many customers might discover your store online. But they'll love the opportunity to see and experience products firsthand in a retail store.

Creating a cohesive brand identity across your physical and online stores is also essential. Your brand identity encompasses everything from your store's décor and layout to the packaging and customer service experience. Consistency is key; customers should recognise the same brand values, whether they encounter it online or in person.

Balancing Inventory: Efficient Management

Inventory management becomes more complex when managing both physical stores and online stores. Still, it's an essential part of running a retail business. Efficient inventory management is essential. It allows you to meet customer demand without overstocking or running out of popular items. Retail businesses often use inventory software across their physical and online stores. This provides real-time inventory updates, reducing the chances of stockouts or duplications. It streamlines the shopping experience for customers.

The Rewards of a Physical Store: Boosting Sales and Loyalty

Opening a physical store brings challenges but can offer substantial rewards. It can be instrumental in driving sales and customer loyalty. While online shopping is popular, physical stores provide a unique advantage. They allow customers to see, touch, and try products in person. This increases sales opportunities and customer satisfaction. Additionally, a physical store can help build deeper customer loyalty and brand engagement. It creates a space where customers can connect personally with your brand.

To find out more or to get a shop and retail insurance quotation, click here.

Sources

1. store.mintel.com/uk-state-of-retail-market-report
2. statista.com/e-commerce-share-of-retail-sales-worldwide
3. lsretail.com/why-physical-stores-are-still-vital-for-retail

* Please click here to view our pricing disclaimer.