The Ultimate Guide to Bricks-and-Mortar Retail: Everything You Need to Know

In this article, we’ll delve into the realm of brick and mortar stores, uncovering their significance, challenges, and how they’re thriving in the digital age.

Key Takeaways

• Brick and mortar is a term that refers to businesses that sell products or services to customers face-to-face, unlike online businesses that sell through websites or apps. 
• Brick and mortar businesses can also have an online presence, but their main source of revenue comes from their physical store.

What is Brick and Mortar?

Brick and mortar is a type of business model that relies on having a physical store where customers can browse, try, and buy products or services. Some examples of brick and mortar businesses are: 

• grocery stores, 
• clothing stores, 
• restaurants, 
• bookstores, and 
• salons. 

Brick and mortar businesses can offer customers a more personal and interactive shopping experience, as well as the opportunity to inspect the quality of the products before purchasing them.

Expenses for Running a Brick and Mortar Store

The Costs of Running a Brick and Mortar Store Running a brick and mortar store can be expensive and challenging, especially in the era of ecommerce. 

Shopify POS: Overall Best POS Solution for Brick and Mortar Stores

Shopify is associated with thriving online stores and ecommerce triumphs. However, beyond its digital facade lies an omnipotent force that extends its dominion into brick-and-mortar realms. 

In a substantial leap, Shopify transforms from a mere ecommerce platform into the ultimate commerce system, elegantly bridging the chasm between online and offline retail landscapes.

While online stores flourish within Shopify’s main platform, brick-and-mortar counterparts harness the prowess of Shopify POS. This synergy, however, is more than meets the eye. It’s not just an app; it’s an integrated facet of the comprehensive Shopify ecosystem, harmonizing digital and physical retail seamlessly.

Here are some advantages of using Shopify POS:

• Tangible Advantage: The harmony isn’t just an abstract concept; it stands as a tangible advantage. With Shopify POS, you gain the power to establish an auxiliary brick-and-mortar store, effectively complementing your online sales channels.
• Flawless In-Store Interactions: Flexibility defines Shopify POS. Whether you’re conducting transactions on your website or engaging customers on social platforms, the system facilitates seamless in-store interactions. Furthermore, it ensures real-time synchronization of both online and offline inventories, meticulously tracking item numbers across all sales avenues.
• Diverse Product Accommodation: Noteworthy is Shopify POS’s excellence in accommodating an extensive array of products and categories. Particularly for businesses with diverse offerings, the user-friendly web dashboard enables efficient bulk uploads via CSV, effectively streamlining inventory management.
• Mobile Empowerment: Shopify POS transcends the boundaries of a mere web dashboard. Recognizing the dynamic nature of modern retail, Shopify provides Android and iOS apps, thereby empowering you to engage in sales from anywhere at any time. This applies whether you’re on-site or off-site, ensuring uninterrupted connectivity to your business.
• Seamless Compatibility: Envisioning a comprehensive POS system within brick-and-mortar establishments is made easier with Shopify POS. It offers compatibility with an impressive range of retail hardware and software, thus ensuring a seamless alignment with operational needs.
• Multi-Account Management: As your business expands, so does your team. This growth is recognized by Shopify POS, which allows for the creation of multiple secondary accounts under a single admin profile. Through this feature, autonomy over system privileges is granted, all while individual performance is closely monitored.
• Customer Satisfaction Priority: The primacy of customer satisfaction remains a core principle for Shopify POS. This is manifested through the provision of comprehensive customer profiles. These profiles facilitate the secure storage of customer details and the meticulous tracking of transactions, ultimately fostering personalized engagement and the development of enduring relationships.
• Expansive Integration Capabilities: The true hallmark of Shopify POS is its expansive integration capabilities. Virtually every notable sales application has a counterpart Shopify app, thereby allowing for the introduction of additional backend functionalities that are tailored to specific needs. This ensures a highly customizable and adaptable system to suit unique business requirements.

Shopify POS is free for Shopify sellers who are on one of Shopify’s plans, ranging from $5 to $399. You can click here to take a closer look.  

Square POS for Brick and Mortar Stores

In the realm of commerce evolution, Square takes a distinct trajectory. Unlike Shopify, Square embarked on its journey as a payment processing solution, later ascending to new heights by introducing comprehensive ecommerce and POS systems.

As we delve into the Square POS landscape, the strategic underpinnings of this evolution become evident. Square has ingeniously designed moves to seamlessly assimilate additional users into its payment ecosystem.

• Free Ecommerce and POS Platforms: Square offers its ecommerce and POS platforms to users free of charge, eliminating any subscription costs and sweetening the deal for businesses.
• Condition of Payment Solutions Usage: The caveat, however, is the requirement to use Square’s payment solutions for transaction processing. Yet, this condition holds a silver lining, given Square’s reasonable processing rates and compatibility with an extensive array of electronic payment methods, including Apple Pay and Android Pay.
• Diverse POS App Offerings: Square goes beyond a single POS app for brick-and-mortar establishments. In addition to the flagship Square Point of Sale app, Square has ingeniously engineered three more POS alternatives: Square Appointments, Square for Restaurants, and Square for Retail.
• Foundation of Square Point of Sale App: The Square Point of Sale app serves as the foundational solution for brick-and-mortar operations. It offers essential features for standard store management, including offline card processing, SMS and email receipts, payment refunds, discounts, tips handling, inventory management, and more.
• Versatile Solution for Various Businesses: The versatility of the Square Point of Sale app makes it suitable for a myriad of business types. However, Square offers alternative apps tailored to distinct requirements for more specialized needs.
• Optimized Solution for Retail Businesses: Square for Retail is optimized for brick-and-mortar establishments with expansive inventories. It caters to established retail enterprises and includes advanced functionalities such as employee management, multi-location inventory transfers, vendor oversight, purchase order management, profitability tracking, and itemized exchange capabilities.
• Specialized Features for Restaurants: For hospitality-focused businesses like coffee shops, pubs, bars, and food trucks, Square for Restaurants offers specialized features like customizable table plans, menu support, coursing, order tick handling, and tip management.
• Streamlined Scheduling with Square Appointments: Square Appointments is designed for service-based businesses, providing a valuable asset for managing brick-and-mortar store appointments. It empowers customers to book in advance, streamlining the scheduling process.

On the cost front, Square Point of Sale stands as a beacon of generosity. The app is permanently free, accompanied by competitive transaction rates. 

These rates vary based on payment methods, encompassing 2.75% for Readers and Stand payments, 2.6% + 10 cents for Square Terminal payments, and 2.5% + 10 cents for Square Register payments.

Vend POS for Brick and Mortar Stores

When it comes to cloud-based POS systems, Vend POS stands as an unparalleled leader, revolutionizing offline transaction processing. Leveraging the innovative potential of HTML5 for offline caching, Vend POS etches its name as the pioneer in the realm of offline in-store management.

This distinctive approach transforms mobile in-person selling into an exceptional experience. 

• Seamless Offline Transaction Experience: Vend POS liberates transactional activities from internet connectivity constraints, enabling smooth and unrestricted movement. It relies on local cache during offline moments, ensuring uninterrupted operations. Data is promptly synced as the system reconnects to the web.
• Diverse Store Formats: Vend POS goes beyond brick and mortar establishments, offering a robust ecommerce platform. This strategic development empowers businesses to expand into the digital realm, seamlessly integrating secondary online stores with Vend POS.
• Real-time Synchronization: Vend POS and its ecommerce counterpart synchronize in real-time, showcasing the system’s efficiency. Both dimensions are effectively managed from Vend’s web-based dashboard. The iPad version of Vend POS optimally supports brick and mortar sales, providing a cohesive and intuitive experience.
• Comprehensive EPOS Solution: The iPad app and backend system merge to create a comprehensive EPOS solution, facilitating efficient brick and mortar store management. Vend POS streamlines product organization through bulk imports and customizable attribute adjustments.
• Scalability and Adaptability: As businesses evolve, Vend POS seamlessly adapts. Its scalability is evident in its ability to integrate new employees. The inclusion of analytical tools enables businesses to delve into individual cash management tendencies and sales performance levels, optimizing workforce efficiency.
• Customer Tracking and Engagement: Vend POS extends its capabilities to customer tracking. Detailed customer profiles enable close monitoring of spending habits, forming the basis for personalized customer engagement. Vend’s loyalty program allows businesses to reward loyal patrons, nurturing lasting relationships.

Pricing models for Vend POS are designed to cater to diverse business needs. 

• The Lean plan: $89 per month billed annually or $69 billed monthly, caters to essential business requirements. For those seeking omnichannel expansion, 
• The Standard plan: $149 per month billed annually or $119 billed monthly, ideal for those seeking omnichannel expansion
• The Advanced plan: $269 per month billed annually or $199 billed monthly, offers advanced tools for businesses aiming to explore further
• The Enterprise plan stands as a tailored solution for high-volume retailers and enterprises. 

Ecommerce vs Brick and Mortar: What’s the difference?

In the world of retail, the terms “ecommerce” and “brick and mortar” are often bundled together, sharing the overarching label of “retail.” However, it’s essential to recognize that beneath this common facade lies a world of differences that distinguish these two realms. 

Location

The most apparent distinction lies in their physical presence. 

Ecommerce stores transcend the boundaries of brick and mortar, devoid of a physical location. Transactions take place virtually, with items ordered through digital shopping carts and subsequently shipped to customers. 

On the other hand, brick and mortar establishments embody a tangible storefront or a network of physical stores. The convergence of both domains is increasingly prevalent, with businesses recognizing the potential of operating in tandem to amplify sales.

Transactions

Traditionally, brick and mortar transactions involved card or cash payments. However, the digital age has ushered in a shift, prompting the adaptation to digital wallets like Apple Pay and Android Pay. 

Ecommerce stores, while incapable of accepting cash, offer versatile payment options through online platforms like PayPal and even cryptocurrency like bitcoin.

Marketing

Divergence persists in marketing strategies. Brick and mortar stores embrace conventional methods such as leaflets, television, radio, billboards, and newspapers. 

In contrast, ecommerce stores leverage the power of digital marketing, harnessing paid search, social media, and email campaigns. 

As the digital realm expands, brick and mortar stores have yet to fully harness its potential, particularly in data collection—a facet that offers untapped advantages.

Human Interaction

The digital realm lacks the immediacy of human interaction. Card abandonment rates of approximately 80% in the online space highlight the absence of real-time support. This gap is bridged by brick and mortar stores, where attentive staff can answer queries and address concerns, significantly boosting conversion rates and customer satisfaction.

Expenses

While it’s often assumed that brick and mortar setups entail higher costs, the reality is more nuanced. Ecommerce stores may seem cost-effective initially, leveraging platforms like Shopify, but hidden expenses emerge. Shipping, returns, customer acquisition, and competition-induced customer loss contribute to the overall cost. 

Brick and mortar stores entail expenses like rent, employee wages, hardware, POS software, property tax, and inventory warehousing. 

Here is the table comparison of ecommerce vs brick and mortar:

How Mobile is Revolutionizing Brick and Mortar Stores

Gone are the days when traditional physical stores existed in isolation; the era of mobile-driven brick and mortar experiences is upon us, reshaping customer interactions, igniting growth, and propelling businesses toward unparalleled success.

Mobile Optimization Beckons Shoppers In

The allure of mobile experiences is proving irresistible to shoppers. A study by Think with Google found that when people shop, their smartphone is now their go-to advisor and assistant. This means big opportunities for retailers to be there and be useful in shoppers’ micro-moments. 

The power lies in creating an engaging virtual storefront that beckons potential customers, ensuring that your brand remains at the forefront of their minds when proximity allows a visit.

Seamless In-Store Experience

Customers who relish a seamless mobile shopping encounter anticipate a harmonious in-store extension. Interactive kiosks, barcode scanners, and Wi-Fi connectivity are transforming traditional spaces into tech-infused havens. A visit to your brick and mortar store should mirror the ease and convenience your customers experience online, fostering a consistent and delightful journey.

Unlock the Power of Location-Based Advertising

Modern advertising has evolved, and location-based targeting is taking center stage. Google AdWords, Yelp, Foursquare, Groupon, and Living Social present potent avenues for local businesses to connect with potential customers. 

By catering to the specific needs and preferences of nearby consumers, these platforms enable you to magnify your store’s presence, boosting foot traffic and enhancing brand visibility in the local community.

Paid Search: Elevate Awareness and Footfall

Harnessing the potential of paid search enables you to amplify your store’s visibility to local audiences. With the ability to include your store’s address, telephone number, opening hours, and even distance from the user’s location, paid search is a formidable tool for generating footfall. 

The option for users to set reminders when near your store injects urgency, translating to increased physical visits and heightened engagement.

From Showroom to Sale

The concept of showrooming is ushering in a new era of shopping behavior. Shoppers are visiting brick and mortar stores to experience products firsthand before making online purchases. 

You can capitalize on this trend by providing an immersive in-store experience complete with Wi-Fi access, local shipping options, and readily accessible reviews. Also, embrace the transformation of your store into a showroom, enticing customers to explore and engage.

Embrace Mobile Payment Technology

The dawn of mobile payment technology is upon us, revolutionizing the checkout process. Companies like Scandit are at the forefront, integrating mobile barcode, object recognition, and augmented reality to streamline transactions. 

This evolution translates to enhanced customer satisfaction, reduced staff requirements, decreased hardware expenses, and the advent of digital receipts.

Empower with Digital Receipts and In-Store Rewards

As paper receipts yield to digital counterparts, customers relish the convenience of receiving transaction details directly on their mobile devices. The emergence of mobile wallets and payment options like Apple Pay heralds a new era of digital commerce. 

Leveraging this shift, businesses can craft tailored promotions, reward schemes, and feedback requests on digital receipts. Additionally, in-store exclusive rewards and concierge services inject an element of exclusivity, incentivizing visits and fostering a sense of loyalty.

Tips to Stand Out With Your Brick and Mortar Store

Beyond embracing mobile technology, a plethora of ingenious strategies await to propel your physical store into the spotlight, fostering customer engagement, brand loyalty, and unrivaled success.

Ignite Engagement with Events

You can transform your store into a hub of activity by hosting captivating events. Integrate platforms like Eventbrite onto your website to seamlessly showcase upcoming events, enabling visitors to register effortlessly. 

These events not only introduce potential customers to your products but also require their contact information for registration, providing a golden opportunity for future marketing endeavors.

Elevate Convenience with Click and Collect

Harness the power of click and collect, an enticing offering that entwines online and offline experiences. According to Econsultancy, 44% of customers are more inclined to make purchases if they can collect items from your store. This not only accommodates their schedules but also grants you the chance to personally engage, upsell, and curate a delightful shopping encounter.

Unveil Exclusive In-Store Deals

Break the mold of conventional pricing strategies by unveiling exclusive in-store deals. You can:

• Embrace the cost-saving advantage of avoiding shipping expenses, enabling you to extend alluring discounts. 
• Employ targeted email campaigns to unveil these exclusive offers, enticing customers to grace your physical establishment and enjoy unparalleled savings.

Sync Online and Offline Prices

Seamless consistency is key—align the prices across your online and offline stores. Fostering price uniformity is integral to building trust and avoiding customer dissonance. A harmonized pricing strategy ensures transparency and establishes your brand as reliable and honest.

Craft Unforgettable In-Store Experiences

Transcend the ordinary by transforming your store into an unforgettable haven. Gone are the days of merely housing products—embrace experiential retail, integrating immersive elements that captivate and engage. Be it interactive displays, themed sections, or engaging workshops, curate an environment that nurtures genuine connections and delights the senses.

Elevate Customers to Fans

Personalization is paramount—transcend generic interactions by tailoring your approach. Leverage your CRM system to glean insights into customer preferences, allowing you to craft personalized offers, recommendations, and communications. Elevate shoppers to loyal fans through genuine, individualized engagement.

Unveil Guest Speakers and Pop-ups

• Inject allure and exclusivity into your store through captivating guest speakers and pop-up events. 
• Collaborate with local celebrities, authors, or influencers in your niche to enthrall your audience and infuse excitement. 
• Embrace the pop-up trend, releasing limited-edition products exclusively at these events to generate buzz and pique curiosity.

Champion Your Sales Staff

Human interaction is the cornerstone of brick and mortar stores. So:

• Empower your sales staff to embody your brand’s story, mission, and values. 
• Transform them into brand ambassadors who personify your unique identity. 
• Recognize exceptional performance with incentives, commissions, and vouchers, ensuring a motivated and engaged team that drives customer satisfaction.

Leverage Retail Technology

Stay ahead of the curve by embracing cutting-edge retail technology. You can:

• Enhance the in-store experience with digital screens that showcase promotions, product browsing, and stock availability. 
• Leverage smartphones to extend discounts and coupons directly to customers’ devices. 
• Elevate convenience through iPad point-of-sale systems, enabling seamless transactions and digital receipts.

Embrace Beacon Technology

Harness the potential of beacon technology to captivate customers through proximity-based marketing. If your store has an app, utilize beacons to engage Bluetooth-enabled smartphones, enticing repeat app usage with enticing offers. Forge lasting connections and revive app engagement, ensuring your brand remains at the forefront of customers’ minds.

How Point of Sale (POS) is Revolutionizing Brick and Mortar Stores

Amidst a myriad of options, several game-changing features underscore the profound impact of POS systems on the brick and mortar landscape.

Swift Product Lookup

Efficiency is paramount in the bustling world of retail. A cutting-edge POS system facilitates swift product lookup through intuitive commands, allowing staff to promptly access popular items. This expedites the shopping process, enhances customer satisfaction, and empowers employees, ultimately elevating the shopping experience. POS solutions like Vend exemplify this efficiency-enhancing feature.

Versatile Payment Methods

The modern shopper demands flexibility in payment options. An advanced POS system embraces diverse payment methods, including mobile payments and split transactions. This inclusivity caters to evolving customer preferences, enhancing convenience, and broadening the scope for completing transactions seamlessly.

Streamlined Bulk Product Imports

Simplicity reigns when a POS system empowers businesses to upload a plethora of products en masse. This invaluable feature eliminates the arduous task of individually uploading each product, particularly beneficial for establishments with extensive inventories. The efficiency and time-saving prowess of this functionality can be exemplified through platforms like Shopify POS.

Searchable Customer Information

Customer-centricity takes center stage as POS systems facilitate quick and comprehensive access to customer information. Whether for returning items, updating contact details, or enrolling customers in loyalty programs, seamless access to searchable customer data fosters personalized interactions, strengthens relationships, and enhances overall customer satisfaction.

Insightful Reports

In the pursuit of data-driven decision-making, robust reporting capabilities become indispensable. A transformative POS system delivers a range of insightful reports, enabling businesses to gauge performance comprehensively. From a consolidated dashboard displaying vital statistics to detailed product, employee, and customer reports, the analytical prowess of a POS system informs strategic initiatives, drives growth, and empowers businesses to thrive.

Pros of Brick and Mortar Stores

• Instant Gratification: Unlike online shopping, brick and mortar stores provide customers with instant satisfaction. Shoppers can take home their purchases immediately, eliminating the wait associated with deliveries.
• Try Before You Buy: The ability to try on clothing, test products, and experience items firsthand remains a significant advantage. This feature minimizes the need for return logistics and costs, which often plague online retailers.
• Social Interaction: Brick and mortar shopping offers a social dimension that online platforms can’t replicate. Friends and family can shop together, share opinions, and enjoy a sense of community while browsing.
• Customer Experience and Relationship Building: Face-to-face interactions allow businesses to create personalized and memorable customer experiences. Establishing a connection with customers through storytelling and genuine interactions can foster brand loyalty and advocacy.
• Increased Sales Channels: Operating both online and brick and mortar stores expands the reach of businesses, accommodating diverse customer preferences and ultimately driving more sales.
• Security and Trust: In-person transactions provide a sense of security that online transactions may lack. The risk of cyberattacks and data breaches is significantly reduced, enhancing customer trust.

Cons of Brick and Mortar Store

• Labor Costs: Managing a brick and mortar store necessitates hiring and paying employees, including considerations like benefits and training.
• Higher Overheads: Initial setup costs, rent, utilities, and other overhead expenses can be substantial compared to starting an online store.
• Time-Consuming: Launching and running a brick and mortar store demands a significant time investment, potentially diverting attention from other business ventures.
• Limited Store Hours: Unlike online stores that operate around the clock, brick and mortar stores are constrained by opening hours, affecting accessibility for customers.
• Geographical Constraints: Customers must physically travel to the store, limiting the reach to those within proximity. This challenge can be mitigated with pop-up stores and strategic expansion.
• Scalability and Reach: Expanding a brick and mortar presence involves intricate logistics, from finding suitable locations to hiring additional staff, which can hinder rapid scalability.

Is a Brick & Mortar Store Right for You?

Deciding whether a Brick & Mortar (B&M) store is right for you depends on several factors. Below is a comprehensive guide to help you make this decision:

1. Nature of Your Product or Service:

• Tangible Products: If you’re selling products that customers typically want to touch, feel, or try before buying, like clothing or furniture, a physical store might be beneficial.
• Service Oriented: Some services, like hair salons or restaurants, inherently require physical spaces.
• Experience-Based: Products or services that provide an “experience” (e.g., artisanal coffee shops) can benefit from a physical location.

2. Customer Demographics and Behavior:

• Some customer segments, especially older generations, might prefer shopping in-person rather than online.
• If your target audience values personal interaction, expertise, and immediate satisfaction, a B&M store could be advantageous.

3. Financial Considerations:

• Startup Costs: Physical stores can have high startup costs, including rent, utilities, interior setup, and initial inventory.
• Ongoing Costs: Rent, utilities, salaries for in-person staff, and maintenance are ongoing costs to consider.
• Profit Margins: Physical stores might have higher operating costs, which could affect your product pricing and profit margins.

4. Brand Image and Marketing:

• Presence: A physical store can enhance brand visibility, acting as a continuous advertisement in its locality.
• Trust: Physical locations can foster trust, as customers perceive them as more “real” or legitimate.
• Experiences: B&M stores can offer unique in-store experiences, promotions, or events that can act as a marketing tool.

5. Competition and Market Saturation:

• If there’s a high density of competitors in your desired location, it might be difficult to stand out.
• However, if there’s a gap in the market, a B&M store could give you a competitive edge.

6. Flexibility and Commitment:

• Physical stores generally require more commitment in terms of leases and operational hours.
• Consider your willingness to be tied down to a specific location and regular operational hours.

7. Operational Complexity:

• Managing a physical store can be more complex than an online store, requiring inventory management, staff scheduling, in-store promotions, and more.

8. Integration with Online Channels:

• Omnichannel Strategy: Many successful retailers today combine online and offline sales channels. A B&M store can complement your online store, providing a place for returns, pickups, or in-person customer service.
• Local SEO: Having a physical location can boost your local search engine rankings, driving more local customers to both your online and offline channels.

Conclusion

In a rapidly evolving retail landscape, the potential for brick-and-mortar stores to thrive lies in their ability to leverage mobile technology, create memorable in-store experiences, and seamlessly integrate with digital platforms. As technology continues to reshape the retail industry, those who embrace innovation and customer-centric strategies are poised to thrive in the new era of retail.