Physical stores to remain essential as Click & Collect grows

By

Barbara Santamaria

Published
Jul 19, 2016

The retail landscape may be changing but physical stores will remain essential, according to a new research report by Verdict and British Land published on Monday.

Last year, almost all of UK retail sales (98%) touched a store, either through physical sales, click & collect or online sales browsed in store.

With click & collect spend expected to double by 2021, the value of stores is likely to increase over the next five years. “This research demonstrates the continued value of the physical store and the important role it plays in the lives of consumers,” says Charles Maudsley, Head of Retail for British Land. “Leading retailers and landlords need to continue to embrace omnichannel to future-proof physical stores and meet the needs of consumers today and tomorrow.”

Women use click & collect more than men, and Londoners are more likely to visit a store when they shop compared with the rest of the UK. The research also found that shoppers under 35s are also more attached to stores than other age groups, reflecting the role of a physical store as a social activity.

Ben Dimson, Head of Retail Business Development for British Land, said “Data is integral to the way we run our business. Understanding how physical stores influence online sales helps us ensure our retail strategy is deep rooted in the mindset of the consumer. We expect to see continued demand for physical stores from a variety of operators, and this research helps to cement their place within retailers’ plans in an omnichannel age. Even online pure-plays are dipping their toe into the world of physical, taking pop-up space or temporary units. In doing so, they benefit from the ‘halo effect’ that stores offer – generating online sales and strengthening customer relationships.”