Not long ago we were discussing the “new normal” where online shopping was predominant.

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There were people who called this phase Retail Apocalypse.

Now that we have returned to the old normal, a change is becoming more and more evident.

The cost of acquiring customers for online sales is very high with no prospect of decline.

Physical retail chains have accelerated their online presence and practically all of them have some e-commerce operation.

Gone are the days of Netshoes selling online while Centauro was keeping sales in physical stores.

Today Magalu operates Netshoes and Centauro handles Nike sales and everyone competes for the interest of buying online, driving up acquisition costs.

There is no point of sale on the internet

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Visibility has to be bought every day.

Heavy investment in digital marketing, of course, makes a difference in the short term, but it makes companies look very similar, the speeches are repeated.

And in the long term, who is different?

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‍Rony Rodrigues from the MGNT agency.

Brand-building and branding strategies is an option.

Another is to start the operation of physical stores in regions with a high flow of qualified people.

This is the path that networks born in the digital world are taking.

Studies show that more mature consumers prefer to buy in physical stores, well when the 22nd Census indicates a Increase in the average age of the Brazilian population.

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CAPEX vs. OPEX

While the investment in a physical store may be high at the beginning, with the renovation of the store, the finishes and the sales equipment, this cost is diluted over time.

Online operations, on the other hand, can be initiated from a hidden warehouse, your online presence will have to be continuously reinforced by design teams and social media, investment in traffic, influencer sponsorship, email shooting.

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And there's even more of a challenge, buying online is highly comparative and guided by price, shipping cost, and delivery time.

You can't hide the warehouse too much and the profit margin will always be pressured by discounts.

The experience and experimentation of the physical store, combined with the immediate availability of the products, reduce consumers' sensitivity to the highest price.

When such factors are placed on the same comparative basis, The cost of selling a physical store is lower and more sustainable over time, since it is less susceptible to the volatility of online traffic auctions.

And there are still indicators that point to More online sales where there are physical stores, since the locations act like the brand's billboards.

Sign of the Times

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If before physical retail chains were considered outdated because they did not operate on the internet, now online retailers seek physical presence as a means of survival.

In practice, these boundaries are fluid and it is necessary to have an integrated vision of the possibilities that each environment offers.

Discover the Young Geomarketers Watch challenge promoted together with Hypr and work with the most advanced digital marketing technologies aimed at offline.

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