Lately, online business is booming, and e-commerce has become as common as any traditional businesses. When the pandemic hit, online transactions and their popularity and use were catapulted from a mere growing trend into today’s norm. It does not mean you, as the business owner, should overlook another facet of income: the old brick-and-mortar set-up. According to this article by Forbes, traditional businesses can still compete with e-commerce giants today. Their solutions are as simple as offering drop-shipping, having better deals in-stores, and participating in the online field while maintaining your physical business.
The article is right. Online shopping can be an attractive mode of purchase, but it also has its downfalls where traditional businesses usually shine. If you want to have an advantage in the industry and get ahead of your competitors, read on how a retail space can either jump-start your online business or become a base for your plans in one.
What Is A Retail Space?
Retail space is where business owners, who are looking to start their physical store, either lease or buy it. They are usually around areas heavy with buyer traffic, like malls, suburbs, metropolitan areas, etc. They can even be in the form of a temporary store, like those in a school fair, but those are usually spaces to rent only.
They usually take advantage of spaces that have a lot of flow of customers. They are set up to make sure the people passing by can see their goods displayed, and if interested, they can come inside and browse goods or services. There are several strategically placed spaces up for lease, just like this retail space in Indiana, if you’re ever looking for one in the area. But what are the benefits of getting a retail space? Read on to find out.
Are There Benefits?
Yes, there are benefits; there are several reasons to put up your business utilizing a retail space. Contrary to the belief, online transactions are a steppingstone for retail stores, elevating them to new heights through accessibility and brand exposure.
1. Brand Definition
Having a retail space for your business will ultimately define it. Your company will not be just the service you offer or the products you intend to sell. It will be an experience for your customers, and it will be up to them to decide if they’ll seek your business again based on it.
Rather than create a distance between you and your customers, allow them to define your company with a virtual experience. Chances are the latter will be the one to represent your business as a whole.
2. Interpersonal Connection
With a physical store, you will have several opportunities to show your company still has the touch of humanity in it. According to this research done by WGSN: https://lp.wgsn.com/high-velocity-wp.html, 82% of US consumers prefer human interaction than the AI’s many companies have been installing. 59% of the general population think companies have lost a critical human element in customer service and retail sales.
Those customers that shop purely online has been seen to spend less than if the buyer was inside a physical store with a sales associate. E-commerce might have attractive features, such as free shipping, vouchers, and discounted add-ons. Still, it lacks a human-to-human interaction traditional businesses thrive in, and what most customers want.
With a physical store, you will be able to decide the lighting, which shelf goes where, and how the place generally looks and feels. Unlike a department store, where you have little to no control over the environment or how your products will be displayed, having a retail space will allow that. This will contribute to the experience your customers will have, and those who usually shop around busy commercial stores will feel the stark difference.
Other than that, having your store will equip you with direct feedback from the customers. You’ll be able to speak to them, hear their opinions, and take notes for the improvement of your business. Online stores may have reviews in the form of stars or numbers, but speaking directly with the customer avoids miscommunication elements, such as a language barrier.
Should You Lease or Buy A Retail Space?
There are pros and cons to both renting and buying a retail space. For renting, you will not have to bother with the overall maintenance of the building you are residing in. It is also cheaper than buying a space if you are planning for a temporary space rather than a permanent one. There are still drawbacks though, like paying a large fee every month. Your control over the area is also limited, and rather than an asset, the building’s value every month becomes money you pay to the owner.
On the other hand, buying is giving you the freedom to do what you will with the space you bought. It can also become a profitable income if you decide to sell it. Though keep in mind, owning a room means you will be responsible for maintaining the place. It also costs more money than the former and serves as a long-term commitment.
The choice still lies in what your business is, and how you want to go about it. The bottom line is, having a retail space gives you another way to up your sales other than having an online presence. Rather than risking having one’s profit without the other, opt to provide both a try and see how it goes for you.