Brands need physical stores to drive online sales, survey says

A survey of over 2,500 consumers in the UK has found that online pure players experience 50% lower online sales than retailers with a physical presence.

The research, released by CACI, the consumer and location intelligence specialist, showed that online sales are an average of 106% higher within a physical store’s catchment. And this rises to 127% for fashion and 124% for the sportswear sector, demonstrating what CACI has called the ‘halo effect’ of physical retailing.

CACI explained that the so called ‘halo effect’ underpins the role stores play in influencing purchasing decisions. Over 50% of online spend is still influenced by a bricks-and-mortar store either due to click and collect or because consumers are using stores as showrooms to try on clothes before making a purchase online.

The findings come as more and more retailers choose to reduce their store portfolio to protect their business amid tough trading conditions on the UK high street. National chains including New Look, Mothercare, M&S and Boots are shutting locations and focusing on growing their online presence to adapt to the rise of online shopping. But the report reveals that completely disappearing from the high street might not be the best solution.

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