Recently, EDR hosted a webinar on Retail Site Selection in Today’s Era of Transformation. Stephanie Cegielski, VP Public Relations for ICSC, discussed the big trend among retailers of diversifying from an exclusively online or physical footprint to a multichannel strategy.
Major retailers are mixing it up: Amazon is expanding its footprint in the physical world to meet customers where they live, and Walmart is acquiring online retail brands to attract new audiences to their brand and stores:
Nearly 75% of multichannel retailers are more profitable than their pureplay counterparts. A recent ICSC study showed that opening a new physical store leads to a 37% average increase in overall web traffic. Having multiple touch points for consumers creates a halo effect that permeates into the other channels.
Ceglieski sees two big reasons for the success of omnichannel for retailers:
- Physical Presence Boosts Brand Awareness – Going from 1 store / 3 million people to 1 store / 1 million people increased brand awareness by 83%. And, on average, the share of web traffic for a retailer increases 27% within a specific market when a new store opens.
- Click and Collect is Popular – Consumers enjoy the convenience of product search and selection online combined with the instant gratification of local in-store pick-up.
The flow of VC funding to stores pursuing this strategy is a big indicator this is a trend to watch, and for retailers to adopt. This is just one takeaway from this informative webinar. You can get the full webinar recording here.