Online Retailers Are Moving into the Real World

Online retailers are moving into bricks-and-mortar locations. A new report from CBRE shows a 367% increase in online retailers opening up physical locations in Southern California over the last four years. Online retailers are seeing the benefits of having a storefront, including increased sales, better customer connection and a way to standout in a crowded online marketplace.

“Online retailers are looking to build an emotional connection with the consumer and the physical store allows them to do that better,” says Jeffrey Moore, senior managing director at CBRE, tells GlobeSt.com. “Apparel, shoes and accessories make up a majority of clicks-and-bricks locations, giving the consumer a chance to try on the items and touch and feel the product ahead of purchasing. Instant gratification is a major reason consumers prefer in-store shopping. Successful retailers today need both, an online and a physical presence to remain relevant and build long-term loyalty.  People want convenience and experience and options.  To be successful and grow, traditional storefront retailers need an on-line presence and online etailers need the physical storefront.”

The report shows a significant increase of store openings in the Los Angeles and Orange County. “Southern California is a trendsetting market with savvy consumers. What happens here often migrates to the rest of the county,” says Moore.  “SoCal also has the population density, income, diversity and buying power for online retailers to launch physical stores.  Some of these entrepreneurial business people live in Southern California.”