The Halo Effect: How Bricks Impact Clicks

Explore whether or not physical stores have any impact on retailers' web traffic, consumer perceptions of and behaviors with a brand.

A new store opens.

How does it impact the brand's web traffic?

KEY FINDING
THAT'S CORRECT!

37%

average increase in web traffic
after a new store is opened

45%

Emerging
Retailers

36%

Established
Retailers
INCORRECT

37%

average increase in web traffic
after a new store is opened

45%

Emerging
Retailers

36%

Established
Retailers
KEY FINDING

Opening a physical store increases traffic to that retailer’s website. And...

And...

It also drives up the share of web traffic within that market by an average 27%.

Before
STORE OPENING
After

27%

See how this positive influence holds true for all tested retail categories.

Emerging
Retailers

Emerging
Retailers

+32%

Established
Retailers

Established
Retailers

+27%

Apparel
Retailers

Apparel
Retailers

+26%

Non-Apparel
Retailers

Non-Apparel
Retailers

+27%
80%

80%

of the store openings studied resulted in an increase in the retailer's share of web traffic.

In the omnichannel environment, physical stores will continue to play a role.”

Dana Telsey
CEO and Chief Research Officer of Telsey Advisory Group
KEY FINDING

When retailers invest in brick-and-mortar stores, their online presence thrives.

The inverse also holds true.

Closing stores causes a drop in the share of web traffic.

Before
STORE CLOSING
After

-4%

KEY FINDING

The greater proportion of stores closed in a market, the greater the decline in share of web traffic. Let's see how it affected these retail categories:

Apparel

Apparel

-9.5%

Department

Department

-7.9%

Home

Home

-16.4%

The results clearly show that physical retail locations drive digital engagement. But there’s another important dimension of retail success that’s a direct result of retailers’ online retail ventures:

We have to look at the integrated contributions and also understand the negative effects of what happens to the digital business if a retailer closes their only store in a market."

Michael Brown
Partner, Consumer Products and Retail Practice, A.T. Kearney

Brand perception.

In all of the markets tested where retailers had stores, the brands showed increases on each of the five brand health metrics when compared to a national benchmark.

Awareness
Impression
Consideration
Identification
NPS

Awareness

Consumer familiarity with the brand’s image and attributes

Tested
Markets

48%

Difference

+4.5

National
Benchmark

44%
Awareness
Impression
Consideration
Identification
NPS

Impression

Consumer perceptions of the brand

Tested
Markets

57%

Difference

+0.6

National
Benchmark

56%
Awareness
Impression
Consideration
Identification
NPS

Consideration

Willingness to consider purchasing from a brand

Tested
Markets

65%

Difference

+2.3

National
Benchmark

62%
Awareness
Impression
Consideration
Identification
NPS

Identification

Consumer belief that brand speaks to their character and values

Tested
Markets

44%

Difference

+0.7

National
Benchmark

43%
Awareness
Impression
Consideration
Identification
NPS

Net Promoter Score (NPS)

An index score measuring consumer loyalty

Tested
Markets

12

Difference

+3.8

National
Benchmark

8
KEY FINDING

Physical locations are places where brands can make genuine connections with consumers who are considerably more informed today than they were yesterday.

In markets where stores are present,

84%

of consumers have shopped in store

What does it all mean?

Physical stores should be a part of any retailer strategy because they:

Drive web traffic

A physical store increases a retailer’s web traffic and share of the digital market.

Improve brand health

Strengthening consumer identification of and with a brand expands its customer base and increases sales.

Encourage in-store shopping

In-store conversion rates are four times higher than online-only conversion rates.

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