Definition of a Brick and Mortar Retailer

Brick-and-mortar stores operate from a physical storefront, as opposed to other common retailing methods such as mail order catalogs or online shopping. Brick-and-mortar retailing can offer a number of benefits and drawbacks for store owners as well as customers. If you’re an aspiring retailer, you’ll need to determine whether a brick-and-mortar location makes sense for you and whether you should incorporate other selling methods as well.

Different Customer Experience

A brick-and-mortar location can offer an enhanced customer experience compared to other methods, such as online shopping. Customers actually get to handle the merchandise or try it on for size in the case of clothing, giving them a greater sense of a product’s features and benefits.

Some shoppers also prefer the face-to-face interaction they have with sales clerks and other store personnel, especially if they have questions or problems. Creating the right traffic patterns and customer flow is a key planning strategy for bricks-and-mortar retailers.

Specific Sales Benefits

Brick-and-mortar locations typically provide a greater opportunity for stores to make a sale. In the case of a luxury retailer, for instance, customers can be seduced by the store’s ambiance and image, and attentive and persuasive salespeople can entice customers to make a purchase, points out RetailNext.com.

Stores can also make use of in-store displays to encourage impulse purchases. On the other hand, online or catalog shoppers may be content to browse without experiencing any sense of urgency to make a purchase. Placing items that are often impulse purchases near checkout counters is a common strategy for brick-and-mortar retailers. The practice is similar to online retailers suggesting additional items during the shopping cart/checkout process of making a digital purchase.

Costs of In-Person Selling

A drawback to brick-and-mortar operations is the higher operating costs. Store owners may need to enter into a long-term lease agreement to obtain a selling location or go deeply into debt to purchase a building. Depending on the size of the operation, they may also have to hire a relatively large staff. Other costs include utilities, building maintenance, insurance and shrinkage, which includes employee and customer theft as well as damage to merchandise.

Convenience for Customers

Brick-and-mortar locations cannot always offer the convenience shoppers may prefer. Unlike online shopping, for instance, customers are limited to shopping during certain hours of the day. A physical location also requires customers to travel to reach the store. Brick-and-mortar locations have space restrictions, which limit the amount of products that can be offered for sale. Some customers may feel pressured or intimidated in a retail environment, preferring to browse without the intrusion of salespeople or dealing with hordes of shoppers.