In 2025, brick-and-mortar retailers will face numerous challenges stemming from digitalization and shifting consumer behavior. More and more customers are choosing to shop online, making a strong online presence not just an option but a necessity for physical stores. In this blog post, we explain why brick-and-mortar retailers need a robust online presence in 2025 to stay competitive and drive business growth.
1. Changes in Consumer Behavior
1.1. The Rise of Online Shopping
The COVID-19 pandemic fundamentally changed consumer shopping habits. Many people who rarely shopped online before became accustomed to e-commerce during lockdowns. According to a Statista study, the share of online retail sales is expected to exceed 25% of total retail revenue by 2025. This trend highlights that brick-and-mortar retailers need to reach their target audience not only locally but also digitally.
1.2. Omnichannel Customers
Today’s customers are omnichannel and expect seamless shopping experiences across multiple channels. A customer might research a product online, try it out in-store, and then complete the purchase online. Without a strong online presence, retailers miss the chance to engage with these modern shoppers and meet their needs.
2. Competitive Pressure
2.1. Competition from Online Retailers
Online retailers like Amazon and Zalando have revolutionized the retail landscape, often offering lower prices and more convenient shopping experiences. Brick-and-mortar stores must face these challenges head-on and ensure they can compete with these platforms. A well-designed online presence helps showcase products and services while boosting brand awareness.
2.2. Local Competition
Competition exists even within the neighborhood. More and more brick-and-mortar stores are embracing online sales channels to expand their reach. Without an online presence, local customers may turn to competitors who already have a digital footprint.
3. Brand Building and Customer Loyalty
3.1. Strengthening the Brand
A strong online presence allows brick-and-mortar retailers to strengthen their brand and build an online identity. A user-friendly website with engaging content and a consistent design helps enhance brand image. Through social media channels and email marketing, retailers can communicate directly with their customers and boost brand awareness.
3.2. Customer Loyalty
A strong online presence enables brick-and-mortar retailers to build long-term relationships with their customers. Personalized offers, special promotions, and consistent communication help foster customer loyalty and encourage repeat business.
4. Data Analysis and Targeted Marketing Strategies
4.1. Collecting Customer Data
An online presence allows retailers to collect valuable data on customer behavior and preferences. This information helps develop targeted marketing strategies and enhance the overall shopping experience.
4.2. Optimizing Marketing Campaigns
By using analytics tools, brick-and-mortar retailers can make their marketing campaigns more effective. Data on customer interactions, buying behavior, and conversion rates helps optimize future strategies and increase ROI (Return on Investment).
5. Unlocking New Revenue Streams
5.1. E-Commerce as a Revenue Driver
An online presence gives brick-and-mortar retailers the opportunity to unlock additional revenue streams. Selling products through their own webshop or platforms like Etsy or Amazon can lead to significant sales growth.
5.2. Subscriptions and Digital Products
More and more retailers are offering subscriptions or digital products that can be sold alongside their physical goods. This approach can further boost revenue and attract new customers.
6. Flexibility and Adaptability
6.1. Quick Response to Market Changes
A solid online presence enables brick-and-mortar retailers to respond swiftly to market changes. Whether it’s seasonal trends, consumer preferences, or unexpected events, the ability to quickly adapt can make the difference between success and failure.
6.2. Integration of New Technologies
The digital landscape is constantly evolving. With a strong online presence, brick-and-mortar retailers can integrate new technologies like Augmented Reality (AR) or Artificial Intelligence (AI) to enhance the shopping experience and boost customer loyalty.
7. Training and Continuing Education
7.1. Employee Qualification
Building an online presence requires staff training. Employees should be trained in e-commerce, social media, and customer service to ensure they can effectively utilize new technologies and strategies.
7.2. Knowledge Sharing
By integrating digital tools and resources, brick-and-mortar retailers can help their employees continuously learn and expand their skills. This not only improves customer service but also strengthens employee retention.
Conclusion
In 2025, a strong online presence is no longer optional for brick-and-mortar retailers—it’s a necessity. Changing consumer behavior, competitive pressure, and the opportunity to unlock new revenue streams make it crucial to expand our digital footprint.
A strong online presence not only strengthens brand identity but also fosters customer loyalty and provides valuable insights into purchasing behavior. Moreover, it enables quick responses to market changes and the integration of new technologies. Brick-and-mortar retailers who are willing to embrace the challenges of the digital world and optimize their online presence will not only survive but thrive. In the future of retail, bridging the gap between physical stores and online commerce is essential to meet the needs of today’s consumers.
