CACI research reveals brands need physical stores to drive online sales
With debate raging about the future of the High Street, research by CACI has revealed the negative impact of closing stores on brands’ online businesses.
ccording to the research, retailers that do not maintain a bricks and mortar store in a catchment alongside a transactional website typically experience 50% lower online sales compared to those retailers that do have a physical presence.
By analysing data collected via a UK wide survey of over 2,500 consumers, CACI has found sales are an average of 106% higher within a physical store’s catchment, with the impact even greater in the electronics (154%), fashion (127%) and sportswear (124%) sectors. CACI has termed this uplift in sales the ‘halo effect’ of physical retailing.
Alex McCulloch, director of CACI Property Consulting Group, said: “The halo effect highlights two key points as the industry wrestles with how it evolves in the face of seismic shifts in consumer behaviour. Brands should carefully consider the unintended consequences of downsizing their portfolios. What might seem an effective way to reduce costs may also undermine the viability of the business due to the positive impact stores have on online sales.”