Brick and mortar stores are essential for successful online sales

Brick and mortar stores are essential for successful online sales
Brick and mortar stores are essential for successful online sales
  06Aug2019

According to UTG analysts, it is a mistake to believe that online sales will replace traditional stores. Selling products from well-known online brands, which typically work offline, is an additional channel to generate revenue, rather than exclusively trading in a virtual store. The opinion of UTG experts is confirmed by the research of the American company CACI. According to international analysts, the closure of physical stores has a negative effect on online business brands. 

A CACI study finds that retailers who get rid of offline channels observe a 50% drop in online sales over time. This is due to the fact that the positive role of the stores influences customers decisions. Moreover, as noted in the study, more than 50% of online revenue comes from offline when the order is made in-store or the store operates as a showroom. As across-magazine writes, amid of this fact, retail has even introduced a new term: the halo effect, which shows the positive impact of brick and mortar stores on e-commerce. According to Alex McCulloch, Director of CACI Property Consulting Group, this effect provokes brands to consider the unanticipated effects of reducing their offline portfolio carefully. Since, what may seem to be an effective way of reducing costs, is capable of cutting the viability of a business by avoiding the positive impact of stores on online sales.