Tech Bytes: Three Reasons to Buy a Pure Play Retailer

I previously wrote a column about the benefits opening physical stores can offer pure play online retailers. Inspired by the recent completion of the Hudson’s Bay-Gilt acquisition, this week I’d like to examine three instant advantages purchasing a pure play retailer can provide to brick-and-mortar chains.



Instant Expertise

Most brick-and-mortar retailers already offer some level of online and/or omnichannel customer engagement. But many of them aren’t very good at it. The technical, business and cultural skillset that goes into successful digital retailing is distinct from the knowhow that supports successful brick-and-mortar operations. In addition, the underlying technology is different, even in a silo-free, seamless environment.



Any pure play retailer worth buying has top-notch expertise and infrastructure waiting to be integrated into an acquiring brick-and-mortar chain’s omnichannel environment. Obviously the term “instant” is being used loosely here in regard to infrastructure, as the necessary connection, modification and customization may turn out to be costly and time-consuming.



But in the long run, buying a functional pure-play retailer will still be less costly and more effective than trying to build something from the ground up. It will also deliver more control and stability than an outsourced or hosted option.



Instant Online Customers (and Credibility)

As opposed to infrastructure, the “instant” online customers that come along with a pure play purchase really do arrive right away. Their financial and personal data comes along with the sale, and any opt-in agreements they have entered will still be valid.

None of this is to say existing customers of an acquired pure play can be taken for granted. Far from it. The new brick-and-mortar owner needs to perform extensive targeted outreach to convince pure play customers they should maintain their loyalty. This also requires upholding previously existing customer service and experience levels, which will be impossible without retaining pure play expertise (as mentioned above).



As an added bonus, acquiring a pure play also gives an instant credibility boost with experienced online shoppers. They still may not visit your stores, but they may be persuaded to give your newly acquired e-commerce business a try.



Instant Seamless Crossover

Some online shoppers may have no interest in visiting your physical stores, but some probably will. It’s no accident that a lot of pure plays are starting to launch their own brick-and-mortar operations. One of the best ways to obtain profit from an e-commerce site is using it to drive in-store traffic and sales.



Brick-and-mortar chains can quickly start converting in-store sales from an acquired pure play’s customer base through basic tie-ins like buy online pick up in store programs. Depending on how robust a pure play’s mobile marketing program is, an acquiring retailer also may be able to send new online customers time- and location-sensitive promotional texts which encourage in-store visits and purchases.



In general, only larger brick-and-mortar chains will have the necessary resources to purchase and integrate a stand-alone pure-play retailer. But these chains often lack the digital savvy of their smaller, more nimble omnichannel competitors. A smart acquisition can help a traditional physical retailer develop a compelling seamless offering in much less time, which makes the up-front money worth spending.