Why Online Retailers Open Physical Stores

The internet will kill brick-and-mortar retail. That’s a prophecy that has proven at least partly true in 2017 as thousands of chains have closed stores, while others shut down for good, and quite a few remain at risk in 2018. Retail has become increasingly digital, but most shopping still takes place in stores and digital retailers have discovered that, in many cases, there’s a benefit to having a brick-and-mortar presence. In some cases, that can be simply to facilitate returns. That’s why Amazon has a deal in place with Kohl’s. The chain allows customers to drop off items they want sent back to the digital retailer. Amazon has also shown through its purchase of Whole Foods that having a physical presence can help expedite delivery. The roughly 400 grocery stores add to the digital leader’s warehouse network, giving it more points to stage orders from. Most digital retailers, however, have much smaller ambitions. For companies specializing in a more narrow range of products, opening brick-and-mortar locations may make sense simply for the data it can gain from in-person customer interactions. Read more at The Motley Fool.