Companies that once thought they could do all of their business online are beginning to see increased revenue due to actual bricks and mortar stores.
According to a study released by the New York-based International Council of Shopping Centers, traffic for previously online-only retailers has shown a 27 percent increase once they opened an actual physical outlet.
Conversely, closing a physical store has been shown to reduce web traffic by at least 4 percent.
In a statement, Tom McGee, the president of ICSC, said, “there is a direct and positive correlation between having both a physical and digital presence.”
Such upgraded space for online retailers dealing primarily in clothing, home furnishings, and accessories, is usually found in existing shopping malls, although some retailers have built entirely new freestanding outlets.
The Newport Beach, California-based Green Street Advisors now pegs at more than 600 the number of online retailers in recent months who have opened new physical outlets.
One of those retailers, New York-based Casper, which specializes in mattresses, pillows, and duvets, has opened twenty such stores and has plans for as many as 200 by the year 2021.
Warby Parker, also based in New York, has announced plans to build up to one hundred new stories to display and sell its vintage-style eyeglasses and sunglasses.
By Garry Boulard
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