Colliers: Online retailers are looking
at how physical stores can generate more trade
The growth rate of e-commerce sales is forecast to fall over the next four years, according to a study by Colliers International, and the online ‘pure-play brands’ are increasingly looking at how they can support future sales. For many e-retailers, part of the remedy is to open ‘showrooms’ in physical shopping environments which both generate online sales and raise awareness of their brand.
In 2016, online retail sales grew by 11.5% year-on-year, but this level of growth is projected to steadily decline through to 2021 when it is forecast to be around 7%.
Research by British Land highlighted that pure-play retailers which opened a physical store saw online sales increase by 52% within the catchment area.
SHOWCASE – HOTEL CHOCOLAT
the company starts by selling chocolates online, becoming one of the UK’s earliest ever “e-tailers”
the company opens the first shop in UK
the company opens a café in London’s Borough market
Boucan, a luxury hotel, restaurant and spa, is opened on the company’s cocoa plantation in Saint Lucia
Hotel Chocolat is approaching 100 stores in high streets and shopping centers across UK and enters Hong Kong market
THE ROMANIAN STORY – EXAMPLES OF E-COMMERCE PLAYERS COMBINING ONLINE WITH PHYSICAL STORES
The biggest online retailer in Romania, has 13 showrooms all over the country – 2 in Bucharest and one in Timisoara, Sibiu, Iasi, Galati, Constanta, Ploiesti, Pitesti, Brasov Craiova, Oradea and Cluj.
Started in 2010 as an online bookstore and grew into an online family mall. The retailer has developed a strong pick-up points’ network (where it also showcases some products) with 15 locations in Bucharest and another 19 in the country.
The fashion retailer entered the Romanian market in 2015 and to differentiate in a competitive industry, decided to open locations where clients can try the items they have shopped for online. Zoot has now 8 such spaces: 6 in Bucharest and one in Cluj-Napoca and Timisoara.
The online fashion shop which promotes Romanian designers was opened by local entrepreneur, Mirela Bucovicean, in 2010. Five years after, Molecule F opened a concept store in Promenada, the shopping mall from Bucharest belonging to NEPI.
Check out the full Colliers study .