More retailers going from clicks to bricks
The emphasis on omnichannel commerce has largely laid to rest (at least for now) the debate of online versus offline. Indeed, A.T. Kearney put it best in the title of a recent study, “On Solid Ground: Brick and Mortar is the Foundation of Omnichannel Retailing.”
Whether a space is used for showrooming, webrooming, a pick-up-and-return venue for online orders, or plain old shopping, the physical store plays a crucial role in the shopper’s journey. And as A.T. Kearney noted in its study: “It’s been proven that having multiple channels is good for business.”
That idea has been taken to heart by savvy pure-play online retailers that, increasingly, are adding to their virtual stake by experimenting with — and, in some cases, growing — an offline presence. Here is an update on retailers that have made the plunge:
• Fabletics: The online activewear and accessories brand, co-founded by actress Kate Hudson and owned by JustFab Inc., is positioned in the fast-growing “athleisure” market.
Launched in 2013, Fabletics is set to open its first store at Bridgewater Commons, Bridgewater, New Jersey, and The Mall in Columbia, Columbia, Maryland. Another three stores are in the works. (All the locations are in malls owned by General Growth Properties.)
“More and more, we are seeing pure-play retailers like Fabletics see the value of adding physical locations to enhance sales and brand visibility,” stated Alan Barocas, senior executive VP leasing, GGP. “In fact, 90% of all U.S. retail sales occur at physical stores, and when a pure-play retailer opens a physical store, they see online sales increase three to five times in the same trade area.”
Fabletics’ stores blend online and offline components, offering extensive assortment, mobile POS, free shipping for out-of-stock items, and buy online and pick up in store (BOPUS).
In addition, shoppers can access a virtual shopping cart, allowing them to complete purchases online after their store visit. Online, they can book in-store fittings.
• Blue Nile: In opening its first freestanding physical space, fine jewelry and diamond retailer Blue Nile opted to take a showroom (or what the company calls “Webroom”) strategy.
The 325-sq.-ft. store, at Roosevelt Field Mall in Garden City, New York, is intended to give shoppers the opportunity to see and experience the company’s products in person — before purchasing the items online. More than 400 styles are featured on site. Associates use iPads to show customers Blue Nile’s complete assortment and assist them with their selection.
Merchandise can be picked up at the store, which also provides free cleanings and repair.
Blue Nile hired retail design firm JGA, Southfield, Michigan, to design the space, which has an inviting, contemporary look. High-tech flourishes, including an illuminated back wall, are balanced by warm and evocative, graphic black and white photography.
• BaubleBar: Launched in 2011, the fast-fashion jewelry brand has opened its first permanent brick-and-mortar location, a 1,200-sq.-ft. shop at Roosevelt Field Mall, in Garden City, New York.
BaubleBar, known for its on-trend but affordable jewelry, previously tested offline retail with pop-ups. It also sells a limited selection of goods at Nordstrom, Bloomingdale’s and Anthropologie stores.
The new BaubleBar shop is colorful and stylish, and stocked with a wide array of trinkets. It features a “selfie station,” where customers can take photos of themselves bejeweled, and a statement wall to encourage layering.
• Birchbox: The 5-year-old online beauty subscription retailer has made clear that expanding its offline footprint is a strategic priority for the next phase of its business. With one physical store (in Manhattan’s SoHo, opened in 2014), Birchbox plans to open two additional permanent stores in 2016, including one dedicated to men’s products under the banner of Birchbox Man. And this past summer, it tested in-store beauty counters in select Gap stores.
In a novel twist, Birchbox will decide where to locate its two new stores by crowdsourcing customer votes for where to place pop-ups in three U.S. cities. The two best-performing pop-ups will get the permanent physical stores.
“Our offline customers have a higher lifetime value with us online, so for us, this isn’t just another cute pop-up — it’s a serious step toward further retail expansion and a way for us to test the waters in new markets,” said Katia Beauchamp, co-founder and CEO of Birchbox.
• Sole Society: Women’s footwear and accessories retailer Sole Society chose Santa Monica Place, Santa Monica, California, to make its brick-and-mortar debut. Known for its on-trend styles and affordable prices, the brand is showcasing its full product line in the 2,250-sq.-ft. space.
The store combines offline elements with digital ones, and has an in-store kiosk that acts as a virtual concierge — offering customers the option to send gifts or mail their purchases home when traveling. It also gives customers the ability to search Sole Society’s full assortment and inventory, shop for sold-out styles or sizes, and have their purchases delivered within 24 to 48 hours in the Southern California area.
In addition to its own branded goods, Sole Society’s physical outpost features a revolving curated collection of apparel, home and beauty offerings from like-minded brands.
• Rent the Runway: The online rental company, which rents designer dresses, pantsuits and accessories, recently opened its fourth freestanding store — in Chicago — and more are in the works. It has announced plans to open a network of stores across 15 key markets, along with a distribution center on the West Coast.
Rent the Runway’s 2,940-sq.-ft. Chicago location is its most stylish-looking to date, with luxe dressing rooms and a “Selfie Mirror” that takes photos from different angles and emails them to the shopper for future reference.
Similar to the brand’s other stores, the shop offers one-on-one sessions with stylists and same-day rentals. Most customers book an appointment. But walk-ins are also welcome, and a customer can leave with a dress the same day.
The Chicago outpost is the company’s first to serve as a platform for local female entrepreneurs to promote their businesses. It will host talks with Chicago business women and post their stories on the Rent the Runway website.
NYX Professional Makeup: A playground for beauty junkies who love to have fun with makeup. That’s how cosmetics marketer NYX Professional Makeup describes its first physical outpost.
The company is opening five stores, with the first at Westfield Santa Anita Mall, Arcadia, California. It will carry the brand’s exclusive line of cosmetic products and celebrate makeup artistry via an interactive approach that combines digital technology with a hands-on, self-learning environment.
The space will feature an interactive “NYX Beauty Bar,” a digital community wall; digital imagery and social media content