In-Store is Still the Primary Revenue Earner, But Digital Tools Drive Additional In-Store Revenues
Consumers globally have rapidly adopted digital retail channels. Online retail sales in the US are expected to reach $370 billion in 2017, up from $231 billion in 2012.
However, this does not ring a death knell for bricks-and-mortar retail stores. Despite the rapid double digit growth rate of e-business, online channels are expected to contribute to only around 10% of all US retail sales by 2017. The physical store still remains the primary point of sale for a large proportion of consumers. Physical stores are also indispensable to retailers because of the higher sales conversion rates that they achieve. A study indicates that during 2011, US store sales conversion rates were 14 times higher than their e-business counterparts.
In this paper we look at how digital technologies can help retailers match the growing interest in online channels with the higher sales conversion benefits of physical stores, examining a range of digital services that can be used to drive more traffic in-store and increase revenues.