Ecommerce overheads are significantly lower than brick-and-mortar, if efficiently handled.
This article states that to survive the “retail apocalypse”, brands require a new mind-set with holistic understanding of customers. Many digital companies have opened up brick-and-mortar stores for consumers to collect orders. By integrating digital with brick-and-mortar, small-format-stores witnessed a 5% YoY increase in sales.
Retailers survived the “apocalypse” by being “laser-focused” on their digital presence and focusing on the products that are wanted most by customers. Brands that didn’t survive the changes in the retail industry typically expanded into a variety of departments with new products without estimating the demand.
Some companies also retrained their store staff for online customer service to avoid layoffs. The unification of offline and online agent teams reduces training time and lets the brick-and-mortar sales shift effortlessly into online sales.
[4 minute read]