Whether you’re already running a successful online business and tempted to expand or thinking about starting up from scratch, there’s plenty to factor in when considering whether to join the over 300,000 brick-and-mortar retail outlets in the UK.
Meeting customers face-to-face is an exciting prospect, but you should weigh up the pros and cons fully before deciding whether operating in a physical location is the right choice for your business. Here are some things to think about.
Pros
Improve customer engagement
Being able to interact with your customers directly is a huge advantage. You can personalize your service to their needs, ensuring satisfaction when they visit.
This can include pointing them towards an item they want, letting them try on clothing before they buy it and offering impartial advice to help them pick the right product. Offline, you’ll find fewer barriers to effective communication.
Build your brand
Your brand is everything in the modern retail world. A strong brand makes your business memorable and trusted, encouraging repeat purchases.
A physical store allows you to build your brand further beyond other pillars like your product packaging and design, website and social media presence. Providing excellent customer service can make a real impression on someone, while interaction in person allows you to get real-time feedback on what’s working and what isn’t.
Items are less likely to be returned
It’s always best to prevent returns where possible as each one costs businesses £11.50 on average even on top of not making the sale in the first place.
Returns are more common when people buy items online because they might not look like the image or fit as expected. However, when consumers can see products in person or try them on, they’re more likely to know whether they’ll be satisfied before they buy.
Cons
High operating costs
Running a brick-and-mortar store involves more expenses than an online company. Ongoing costs include rent, utilities, licences, staff pay, cleaning services and more.
You should also bear in mind the opening costs. Most retail spaces need renovation to fit your brand and to optimize the shopping experience. You may also need to add storage space for your stock and a break room for employees.
Security concerns
Vandalism, theft and burglary are all risks associated with a shop, and you’ll need to consider suitable security measures if you open one. Possible solutions include CCTV cameras, shutters and alarms, as well as hiring a guard if you feel particularly threatened.
No security measures can completely rule out a vulnerability to crime, so looking into comprehensive shop insurance can help to provide peace of mind that you’ll have options if something does go wrong.
Geographical issues
A physical store can be limited by its location. You’ll typically only be able to reach those in your local area as most people will be unwilling to travel too far. Other factors, like parking availability or accessibility by public transport, can affect footfall – so, if you can’t secure a good location, be careful about settling for a bad one.
Jessica Alexander
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