Brick-and-Mortar

Definition

Brick-and-mortar refers to a physical, traditional retail store or business that has a physical presence and location, as opposed to an online or e-commerce business. The term reflects the tangible, physical nature of these establishments, which are typically constructed with brick and mortar materials.

5 Must Know Facts For Your Next Test

1. Brick-and-mortar stores provide customers with the ability to physically interact with products, try them on, and receive immediate customer service.
2. Brick-and-mortar retailers often have higher overhead costs compared to online businesses, as they must maintain a physical storefront, inventory, and staffing.
3. Brick-and-mortar stores can serve as a showroom for products, allowing customers to experience the product before purchasing it online.
4. The rise of e-commerce has led many brick-and-mortar retailers to adopt an omnichannel strategy, integrating their physical and online presence to provide a seamless customer experience.
5. Successful brick-and-mortar retailers often focus on creating a unique and engaging in-store experience to differentiate themselves from online competitors.

Review Questions

• Explain the key advantages of a brick-and-mortar retail model compared to an e-commerce model.
  • The primary advantages of a brick-and-mortar retail model include the ability to provide a physical, hands-on shopping experience where customers can interact with products, receive immediate customer service, and benefit from the social aspects of in-store shopping. Brick-and-mortar stores also serve as a showroom for products, allowing customers to try them before purchasing online. Additionally, brick-and-mortar retailers can create a unique and engaging in-store experience to differentiate themselves from e-commerce competitors.
• Describe how brick-and-mortar retailers have adapted to the rise of e-commerce and changing consumer preferences.
  • In response to the growth of e-commerce, many brick-and-mortar retailers have adopted an omnichannel strategy, integrating their physical and online presence to provide a seamless customer experience. This may involve features like buy-online-pickup-in-store, mobile-enabled in-store shopping, and the use of physical stores as distribution centers for online orders. Successful brick-and-mortar retailers have also focused on creating a unique and engaging in-store experience, leveraging the tactile and social aspects of physical shopping to differentiate themselves from online competitors.
• Analyze the role of brick-and-mortar stores within the broader distribution channel and how they contribute to the overall retail mix.
  • Brick-and-mortar stores play a crucial role within the distribution channel, serving as the physical touchpoint between the manufacturer or wholesaler and the end consumer. They contribute to the overall retail mix by providing a platform for product display, hands-on interaction, and immediate customer service. The physical store environment also allows retailers to create a unique brand experience and leverage the social aspects of shopping to drive customer engagement and loyalty. As part of an omnichannel strategy, brick-and-mortar stores can further enhance the distribution channel by serving as distribution hubs for online orders and facilitating a seamless, multichannel shopping experience for consumers.

Related terms

E-Commerce: E-commerce refers to the buying and selling of goods or services over the internet, without the need for a physical retail location.

Omnichannel Retailing: Omnichannel retailing is a multichannel sales approach that provides customers with a seamless shopping experience whether they're shopping online, on a mobile device, or in a physical store.

Retail Mix: The retail mix is the combination of factors that a retailer uses to satisfy the needs of its target market, including product, price, place, promotion, people, and physical evidence.