What is Click and Mortar?
A click-and-mortar business model combines both online and offline operations, typically featuring a website alongside a physical store. This approach allows companies to provide the convenience of online transactions while maintaining in-person customer service, making them more competitive than traditional brick-and-mortar businesses that operate solely offline. It is also known as a clicks-and-bricks model.
Key points:
- A click-and-mortar business model integrates both physical stores and an online presence.
- This model is growing in popularity as customers value the flexibility of purchasing both in-store and online, or inspecting items in person before buying online.
- Online-only retailers can boost traffic by opening physical locations, while traditional storefronts can expand their reach through e-commerce.
Understanding Click and Mortar
Approximately 60 per cent of shoppers use the Internet at some point to research, compare, or purchase products. Recognising this trend, major retailers developed online channels to complement their physical stores. Customers can shop through the retailer’s website, make purchases online, and choose to either have their items shipped or pick them up at a physical store.
Many retailers leverage customer data and in-store Wi-Fi to connect with shoppers, offering special deals or guiding them to areas of interest within the store. Shoppers of high-end items, such as designer clothing, jewellery, or electronics, often prefer to examine products in person before completing their purchase online.
Click-and-mortar retailers benefit from having customers browse their physical stores, as well as providing convenient pick-up locations for online orders. This “ship-to-store” option not only reduces shipping costs but also drives additional foot traffic to the physical stores.
Example of Click and Mortar
More major retail brands such as Coles, Best Buy, and JB Hi-Fi are adopting the click-and-mortar business model. By merging online and offline channels through an omnichannel strategy, these retailers provide customers with a more comprehensive shopping experience, offering greater choices, flexibility, convenience, and services.
This approach benefits retailers by enhancing customer relations and boosting transactions. With substantial budgets for click ads on search engines, these retailers often achieve higher visibility in online product search results.
Special Considerations
For online-only retailers, adding physical storefronts can drive more traffic to their websites while reducing digital marketing expenses. These physical locations often serve as showrooms where customers can try out products or determine clothing and shoe sizes before making an online purchase. Many stores are equipped with web kiosks, allowing shoppers to place online orders directly from the store.
This practice appeals to a segment of shoppers who may be hesitant to buy certain products from online-only merchants. Additionally, physical storefronts help build brand recognition and trust among consumers.
The Rise of Click-and-Mortar Stores in Australia
In Australia, the click-and-mortar model is gaining traction among both consumers and businesses. Several factors are driving this trend:
Consumer Preferences
Australian consumers increasingly value the convenience of online shopping combined with the assurance and immediacy of physical stores. They appreciate the ability to research products online, compare prices, and read reviews, while also having the option to see, touch, and try products in person. The flexibility to choose between home delivery and in-store pickup further enhances the appeal of click-and-mortar stores.
Technological Advancements
Advances in technology have made it easier for retailers to integrate their online and offline operations. Sophisticated e-commerce platforms, mobile apps, and inventory management systems enable seamless coordination between the two channels. These technological tools also provide valuable insights into customer behaviour and preferences, helping retailers optimise their strategies.
Competitive Advantage
For small businesses in Australia, adopting a click-and-mortar model provides a competitive advantage in a crowded retail market. It allows them to compete with larger retailers by offering a unique and personalised shopping experience. The ability to reach a broader audience through online channels while maintaining a local presence helps small businesses thrive in the digital age.
Response to Market Conditions
The pandemic accelerated the adoption of online shopping, but it also highlighted the enduring importance of physical stores. Many Australian retailers pivoted to a click-and-mortar model to survive and thrive during lockdowns and restrictions. This hybrid approach has proven resilient and continues to be a preferred strategy in the post-pandemic retail landscape.
Conclusion
The click-and-mortar model can represent the future of retail in Australia, offering the best of both online and offline shopping experiences. By combining the convenience and reach of e-commerce with the personalised service and community engagement of physical stores, click-and-mortar retailers can meet the diverse needs of modern consumers. For small businesses in Australia, this hybrid approach provides a competitive edge, enabling them to attract and retain customers in an increasingly digital world.
As consumer preferences and market conditions continue to evolve, the flexibility and adaptability of click-and-mortar stores will be key to their success. Embracing this model allows retailers to stay ahead of the curve, offering a seamless and satisfying shopping experience that keeps customers coming back for more.
DISCLAIMER: This article is for informational purposes only and does not supersede official business advice. BARTERCARD is not a business partner of any click-and-mortar stores.
