New report reveals true value of physical stores

British Land, Europe's largest publicly listed real estate company, in partnership with research firm Verdict Retail have published a report on shopping habits, finding 89 percent of all UK retail sales touch a physical store.

This means online sales are by no means replacing bricks and mortar just yet. The findings, called the True Value of Stores, includes click and collect options and online sales browsed in store prior to purchase. The research noted under 35 year olds use stores the most, whereas Londonders are more likely to visit a store as part of their shopping journey.

Beyond the True Value of Stores, there is a 'halo effect': Stores improve brand awareness, customer service and trust, hence physical stores also contribute to online sales that do not directly touch the store.

The latest figures have indicated that click & collect services are set to double by 2021, driving growth in the True Value of Stores. Retailers that can offer a seamless omnichannel experience for shoppers are likely to outperform those who cannot.

"Stores play a vital role in the lives of consumers"

Charles Maudsley, Head of Retail for British Land, said: 'This research demonstrates the continued value of the physical store and the important role it plays in the lives of consumers.

"It builds on our knowledge of why people shop, to better understand how they shop across channels. We see retailers responding to this through their flagship and local stores. British Land's strategy reflects this approach. Our lifestyle-oriented Regional and Local centres deliver a mix of retail, food & beverage and leisure to meet a range of shopper needs."

"Leading retailers and landlords need to continue to embrace omnichannel to future-proof physical stores and meet the needs of consumers today and tomorrow. We are investing in our portfolio to support a variety of shopper journeys, enhance and broaden the appeal of our assets, and create Places People Prefer."

Ben Dimson, Head of Retail Business Development for British Land, said: 'The True Value of Stores research reveals a number of thought-provoking insights, such as the importance of stores for under 35s, and the varied role of the store across sectors.

"Data is integral to the way we run our business. Understanding how physical stores influence online sales helps us ensure our retail strategy is deep rooted in the mindset of the consumer. We expect to see continued demand for physical stores from a variety of operators, and this research helps to cement their place within retailers' plans in an omnichannel age. Even online pure-plays are dipping their toe into the world of physical, taking pop-up space or temporary units. In doing so, they benefit from the 'halo effect' that stores offer - generating online sales and strengthening customer relationships."

Photo Credit: London Oxford Street, Facebook