What Are Brick & Mortar Sales?

Brick and mortar stores are sometimes called physical retail spaces.

Today's retailers have several options when attempting to meet the demands of consumers. Companies may sell items online through catalogs or mailers and at brick-and-mortar locations. Brick-and-mortar retailers are stores that have physical locations for consumers to visit. Although purchasing online drives a large part of the retail market, many consumers still use brick-and-mortar sites for specific items.

A Changing Market

In 2011, a large growth in sales of products online indicates that brick-and-mortar locations will continue to decrease as more and more consumers purchase their products over the Internet. Products for sale online frequently cost less because of the low overhead, and consumers can shop when at a time that is convenient for them since websites are available 24 hours a day. Many consumers have greater access to technology as prices decrease, which means that online sales will continue to grow. Additionally, the popularity of social media such as Facebook and web stores' ratings and review programs can greatly impact retail sales. Information is easily shared and disseminated, making comparison shopping simple and positive reviews or complaints widely available. Technology has greatly affected the retail industry and how consumers choose to spend their money.

Today's Retail Locations

Many of today's successful retailers sell products in several different ways. Some retailers, such as Target, have brick-and-mortar locations as well as Internet storefronts. The Internet sites typically offer a larger range of goods, ensuring that the retailer can meet the vast needs of consumers without having the added expense of stocking every item in multiple physical store locations. Other retailers, such as Kohl's Department Store, place ordering kiosks inside brick-and-mortar locations. Consumers can find a larger selection of goods, including different colors or sizes of clothing on the kiosk. Some companies do not have brick-and-mortar sites at all. Amazon is an example of an Internet retailer that functions almost exclusively online. Amazon's e-reader, the Kindle, is available at a few brick-and-mortar establishments such as Target and Office Depot. Once consumers own the Kindle, e-books and periodical subscriptions are purchased from the Amazon website, helping to generate and sustain the company's online sales.

Brick-and-Mortar Preferences

Although Internet sites are popular with consumers, there are some goods that consumers prefer to purchase in person at brick-and-mortar sites. Consumers most often purchase food and grocery items at brick-and-mortar locations. They like to inspect food items, and many busy buyers don't take the time planning food purchases that would be needed to buy items online. Other retail lines that support brick-and-mortar locations include prescription eyeglasses, health and beauty items, luxury goods and apparel and home decor and furnishings. Appliances are also often purchased at brick-and-mortar stores. These large purchases represent a big part of a family budget. Buyers often like to see the items in person first because of the amount of money they're spending.

e-Commerce Preferences

Consumers show strong preferences for purchasing some goods online. Strong sales of digital media, including music, books, periodicals and movies, are maintained at online sites. Custom-made or made-to-order goods are common online purchases. Consumers can design their own clothing and brand-name shoes, handbags and furniture. Buyers can get a strong sense of what they are purchasing when given specialized online tools to create likenesses of the products they are designing for purchase.

References

• Anvil: Building Brick and Mortar Sales Via the Web; Kent Lewis
• "Milwaukee Journal-Sentinel"; Brick-and-Mortar Retailers Kick up Sales with Kiosks; Doris Hajewski; May 2010
• The Street: 10 Bricks-and-Mortar Stores that Beat Online; Laurie Kulikowski; July 2011
• Chicago Tribune: Borders to Close Half its Stores in Chicago Area; Wailin Wong; February 2011
• The San Diego Union Tribune: Retail's Big Shift--More Consumers Buy Online; Penni Crabtree; July 2011