The terms click and mortar, clicks and bricks, or the more formal — omnichannel retailing, all mean the same thing. They are a type of business model that includes both online and offline operations, typically an online shop and a physical storefront. These types of retailers tend to excel past businesses that only have a storefront or an online shop because they are able to operate much more efficiently. Keep reading as we delve into a few real-world examples to show just how important omnichannel retailing is for businesses.
Successful Omnichannel Retailing
In 2016, Home Depot generated approximately $90 million in revenue and they were able to do this without opening any new stores. In fact, they have not opened a new store in over 3 years. They realized they had to increase revenue per square foot, not through new square footage. This proved to be successful, with 40% of their online orders being picked up in-store. By having a strong presence online and offline, they were able to grow exponentially. Customers can come in person, speak with a sales associate, and order online if need be. This growth is expected to continue! Some of their fellow big box stores have not been so lucky.
Sears: Too Little, Too Late
Walking into your local Sears (if your city still even has one) is a harrowing experience. The last time I stepped foot into a Sears was to get to the Saint Paul License Bureau located on the 2nd floor. Sears has been losing money, closing stores, and selling assets to stay afloat. They have spent over $12 billion in liquidity between 2012-2016. This is because up until 2 days ago, they did not have a strategic plan to implement omnichannel retailing into their business. The CEO just announced this week that they plan to integrate their online and offline channels to turn things around. At this point, it is hard to see things going on the upswing for Sears.
Keep Up with Technology and Consumers
Not that long ago, stores like Home Depot and Sears were doing fine with just their store fronts. But as e-commerce came along and made consumers’ lives easier, retailers had to adapt to these changes. Home Depot and Sears are just a couple examples of retailers that either did or did not adapt to today’s market. There are dozens more like them. And in order to have a successful omnichannel business model, you need to have a great e-commerce site to go with your storefront. This is where Evolve Systems can help. We have experience with e-commerce websites and merchant processing. If you are a retailer and would like to improve your online presence, I encourage you to contact us today! And in case you missed it, check out our previous blog on the top reasons that e-commerce websites fail.