Originally shared by Gideon Rosenblatt
Mixing bricks with clicks
The Economist looks at an emerging trend in hybrid online/physical retailing.
Some good perspective setting first though. I was surprised to see that in the US, the percentage of total retail that is now online is still less than 8%. The UK is over 12% and Germany is in between at 10%. (Don’t ask me how they calculated those numbers; I’m sure there is much discrepancy, depending upon what does and does not get included).
The article does a good job of noting the various categories of products that don’t necessarily require a physical presence to sell (books for example) and other categories where being able to interact with the product is important still (kids car seats, clothing).
This was the most interesting part though:
Happily hybrid John Lewis, an upmarket department-store chain, says that on- and offline shopping spur each other on. When a new shop opens, online sales in the vicinity can jump by 20-40% “overnight”, says Noel Saunders, the manager of the branch near London’s Olympic Stadium. New products can be tested online and stocked in store if they do well. Nearly a third of customers who order online pick up their wares in stores. Britons are among the world’s most avid online shoppers, but 65% still prefer buying in-store, according to a survey by Hitachi Consulting.
From reading about retailer John Lewis in Marjorie Kelly’s great book, “Owning Our Future” and from conversations with David Amerland, it’s not just this hybrid focus that makes the company interesting. They do an amazing job of democratizing their workplace and invest heavily in their people. When you feel secure about your future and the firm’s commitment to you, you’re less afraid of technology replacing you. Perhaps it’s no surprise then, to see them so embrace the web as an augmentation to their physical stores.
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