Mixing bricks with clicks
Pure online retailers do not pay rent but their variable costs eat up much of
that advantage, says Sophie Albizua of eNova Partnership, a consultancy. Without
storefronts to lure in customers they shell out to buy ads linked to Google
search results. Delivery, especially of bulky goods, is a headache. Couriers
show up at empty houses, and fees often fail to cover the full cost. Shoppers
return a quarter or more of clothing they buy, another big expense.
All this looks easier if you have real shops. With “click and collect”
customers can order with, say, a smartphone but pick up the item at a convenient
outlet. Often, they linger to shop more. Britons pick up something extra about
40% of the time, says Ms Albizua.
Happily hybrid John Lewis, an upmarket department-store chain, says that on-
and offline shopping spur each other on. When a new shop opens, online sales in
the vicinity can jump by 20-40% “overnight”, says Noel Saunders, the manager of
the branch near London’s Olympic Stadium. New products can be tested online and
stocked in store if they do well. Nearly a third of customers who order online
pick up their wares in stores.
