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After years of online growth, pure-play etailers are starting to try retailing in the bricks-and-mortar world. Rebecca Thomson explores how they’re doing it
ricks-and-mortar retailers have been on the receiving end of constant streams of multichannel-related advice for years. New technologies and changing shopping habits have piled on the pressure to move with the times – now though, they’re not
alone. Etailers are starting to come under similar pressure, and their reactions to the changes are proving interesting. Amazon’s delivery lockers in shopping centres, Wiggle’s
plans for stores and eBay’s London pop-up store are just some of the developments so far. As online retail develops, it’s becoming more diffi cult to remain confi ned to one channel and for many leading etailers trading solely online may not be a sensible option long term. Providing customers with a range of options in how they shop is likely to be the new norm in years to come. Geoff van Sonsbeeck, founder and chief executive of womenswear retailer Isabella Oliver, says: “In most cases, multichannel retailing will always add value. Multichannel customers spend more and for us as a brand it makes sense.” Etailers are keen to get a slice of the offl ine pie. Electronics
etailer Pixmania opened its fi rst store in 2002 and now has 17 across Europe. The etailer, which has been trading online for 12 years, decided stores were the right option, acting as a showcase for the brands it sells, allowing
16 spring 2012
it to develop services like reserve and collect, and enabling customers to try out products.
Cross-channel challenges But going offl ine from pure-play etailing is diffi cult, and diff erent from developing a website as a bricks-and-mortar retailer. The investment needed is substantial, and overheads are higher with property, store IT and staff costs. Pixmania chief executive Ulric Jerome says the only answer is to approach the whole thing as effi ciently as possible: “You need low operational costs so it doesn’t cost a lot of money.” Etailers wanting to follow in Pixmania’s footsteps need to
be a certain size before attempting it so that there’s plenty of cash to support the endeavour. Making sure online and offl ine prices stay the same is another challenge, he says. Hurdles notwithstanding, store openings are a popular
option and for some, stores have become the next natural step. Childcare retailer Kiddicare, cycling specialist Wiggle and fashion etailer Simply Be are others going down the bricks-and-mortar route. Jevern Partridge, an ecommerce consultant who has worked with retailers including Asos, says: “Pure-play etailers haven’t had to concentrate on an offl ine presence before because the organic growth of online sales has allowed the best to do very well. “Companies were too busy fi xing their operational issues. Lack of sales was not their problem.”
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