Click-And-Mortar Retail: What Are The Pros And Cons?

Click-and-mortar, also known as "clicks to bricks" or "omnichannel" retailing, is a business model that merges online and physical sales channels. It was developed to help retailers reach more customers and offer multiple purchasing options. The pandemic accelerated this trend, as businesses adapted to lockdowns and disruptions by offering both in-person and online services. As a result, many retailers now combine online and offline sales to streamline the customer shopping experience, giving them a competitive edge over those that specialize in only one channel.

Click-and-Mortar vs. Brick-and-Mortar

The key difference is that brick-and-mortar stores have only a physical storefront and rely on in-person sales, while click-and-mortar stores combine physical and online platforms. Click-and-mortar stores often accept various payment methods, including debit, credit, mobile apps like Zapper and SnapScan, e-Wallets, and EFT payments. Brick-and-mortar stores may accept some of these options but often emphasize cash and credit transactions. In terms of marketing, click-and-mortar stores typically focus more on digital strategies, while brick-and-mortar stores might still use a mix of traditional marketing methods.

Advantages of Click-and-Mortar Retail

A Larger Market Brick-and-mortar stores are limited by their location, requiring customers to visit in person. While this can offer a rich in-store experience, it isn't always convenient for customers. Click-and-mortar stores, on the other hand, can reach customers far beyond their physical location, providing access to a larger geographical market, which can lead to more sales and a stronger bottom line.

More Customer Service Opportunities One of the main advantages of click-and-mortar retail is the ability to offer both online and in-person customer support. Whether customers have an issue, need information, or want to make another purchase, they have multiple ways to reach you. This boosts customer confidence and can lead to repeat business, especially if their experience is convenient and positive. Additionally, click-and-mortar retailers offer time-saving options like online purchases with in-store pick-up.

Disadvantages of Click-and-Mortar Retail

More Management Running both online and offline channels requires careful management and coordination. It can be challenging to ensure that all operations, from in-store services to digital platforms, are streamlined and efficient. Miscommunication between different parts of the business can lead to channel conflicts. To avoid this, it's crucial to digitize and integrate processes, ensuring that all customer touchpoints are well-managed.

Higher Costs and Complex Systems Converting a brick-and-mortar store into a click-and-mortar operation comes with added expenses. You may need to build an app, upgrade your website, run marketing campaigns across multiple channels, and hire staff to manage these systems. These costs can add up quickly.

Cybercrime While brick-and-mortar stores typically don't need to worry about cyber threats, click-and-mortar businesses are vulnerable to data breaches and cybercrime. Protecting customer information is critical, and you'll need a strong technical team and security systems in place to prevent and address potential breaches.

The Bottom Line

The pandemic has driven a surge in click-and-mortar stores, which now operate across both online and physical channels. This model offers significant advantages, including a wider customer reach and improved customer service options, but it also comes with challenges like higher costs and the need for complex management systems. If you're considering expanding into click-and-mortar retail, thoughtful planning and proper funding are essential to support your growth. For more information on how to fund your click-and-mortar store, consider a Merchant Capital Cash Advance.

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