Unlocking the Mystery: Why Digital Age Brands Are Embracing Traditional Stores?

Why Digital Age Brands Are Embracing Traditional Stores

In today's digital age, the decision to open physical stores may seem unconventional, yet many brands are embracing brick-and-mortar retail as a means to forge deeper customer connections in crucial markets.

Unlocking the Mystery: Why Digital Age Brands Are Embracing Traditional Stores

According to EyeForRetail's X user, "For certain brands, opening a retail location can be strategically advantageous for three key reasons: enhancing brand experience, bolstering credibility, and strengthening marketing efforts. A retail store functions like a permanent billboard that not only advertises the brand but also offers a richer, tactile brand experience."

Statistics from Forrester underscore this viewpoint, projecting that 72% of total US retail sales will still transpire in physical stores by 2028. Additionally, insights reveal that a majority (64%) of tech-savvy Gen Z consumers prefer offline shopping, highlighting the ongoing demand for physical retail spaces.

Fashion giants such as Dolce Vita, Skims, and Revolve exemplify this trend by recently expanding into brick-and-mortar retail. Dolce Vita, renowned for its footwear, strategically opened its flagship store in New York in April 2023, followed by additional locations including the latest in Austin, Texas, launched in May 2024.

Kerry Norlin, President of Dolce Vita footwear, explained the brand's rationale: "While our products are available through wholesale and online channels, we've observed a growing desire for personalized, in-store experiences."

Similarly, Skims debuted its first permanent store in Washington, DC, while Revolve inaugurated its Aspen storefront, showcasing collections from Revolve and Fwrd luxury brands in June 2024. Outdoor retailer L.L. Bean also plans to open three new locations this fall in key markets like Pennsylvania and Connecticut.

omnichannel experiences

Investing in physical stores allows brands to offer omnichannel experiences, responding to the evolving consumer landscape where 43% of business leaders view this integration as crucial.

Moreover, brick-and-mortar stores serve as robust marketing assets, enhancing visibility and customer engagement. Norlin elaborated, "Opening stores like our Austin location is part of our strategy to boost brand awareness, provide a serene environment for team interactions with customers, and deliver a distinctive shopping experience through unique design and welcoming ambiance."

 mitigate challenges associated with online shopping

Furthermore, physical stores mitigate challenges associated with online shopping, such as sizing discrepancies and quality perceptions, thus reducing return rates—a significant concern estimated at $200 billion for e-commerce.

Despite substantial costs—including average rental rates of $24.69 per square foot and higher premiums for prime locations like New York's 5th Avenue—brands are exploring pop-up stores and innovative inventory strategies to test the waters before committing to permanent retail footprints.

Events and local partnerships further enhance the role of retail spaces as community hubs, fostering deeper brand connections beyond transactional exchanges.

Why Digital Age Brands Are Embracing Traditional Stores?

In conclusion, while the investment in brick-and-mortar stores is substantial, brands are increasingly drawn to the enduring benefits of enhanced credibility, immersive brand experiences, and tangible consumer interactions that physical retail environments uniquely offer.