How do I use evolving role of physical stores for ecommerce?

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Short answer

The best way to think about physical stores is as a customer acquisition channel, not just a sales channel. This reframes the store's purpose from pure profitability to its role in building your brand, acquiring new customers, and boosting your entire ecommerce operation.

TL;DR

On the Retail Gets Real podcast, Andrew Codispoti of Goodlife Clothing lays out the most useful framework: treat physical retail as a customer acquisition channel, not just a sales channel. This fundamentally changes how you measure success. As he explains in the episode on how Goodlife Clothing is growing with bricks-and-mortar, the goal isn’t just four-wall profitability, but the store's total contribution to the brand ecosystem.

First, a physical store is one of the most powerful brand-building tools you have. It turns your online brand into a tangible, multi-sensory experience. Goodlife Clothing uses its stores to let customers feel the quality of their products, reinforcing their brand identity in a way an Instagram ad never could. This is where you build deep customer relationships and create a community hub, transforming the store from a transactional space into an experiential one. As Kerry Cooper from Rothy's explained on the Modern Retail Podcast, this kind of direct customer engagement is essential as digital advertising becomes more fragmented.

By thinking of your store as an acquisition channel, you justify its existence differently. Brick-and-mortar can be a highly effective way to bring new shoppers into your world. A well-placed store captures foot traffic and introduces your brand to people who might never have stumbled upon your website. It's a high-impact top-of-funnel play. This is a crucial part of diversifying beyond social media, a challenge many DTC brands face. Your store becomes a physical entry point to your entire brand experience.

The store's role doesn't stop at acquisition. It must be woven into your digital operations to create a seamless journey. On The Unofficial Shopify Podcast, you'll often hear discussions about the practical side of this, like implementing "buy online, pick up in-store" (BOPIS) and "buy online, return in-store" (BORIS). This turns your store into a logistics and service hub, increasing convenience for the customer. This is a key component of modern Hybrid Retail Models. Instead of being a silo, the store becomes a critical piece of infrastructure that supports your e-commerce business. This is what a true omnichannel retail strategy looks like in practice.

The place this framework breaks down is measurement. How do you actually prove the ROI of a store when its biggest benefits, like brand building and the halo effect on e-commerce sales, are so hard to quantify? David Walmsley of Pandora hit this issue squarely on an episode of Retail Remix. He admitted that they, like most businesses, struggle with measuring success when comparing online and store performance. It’s easy to look at the store’s P&L and see a loss, but that ignores the customer who discovered the brand in-store and then became a high-value online shopper for life. Without sophisticated attribution models, it can be hard to defend the marketing value of a store to stakeholders focused on channel-specific metrics.

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