Many of the reasons shoppers prefer brick-and-mortar retail are exclusive to the in-store environment, including the ability to try on merchandise and receive the product immediately.
Facing limited organic visibility for category keywords on Google, evolved pureplay retailers have seen organic search traffic spike following their first store opening.
In 2014, Warby Parker announced that its stores were collectively profitable. The evolved retailer also reported $3,000 annual store sales per square foot, second only to industry leader Apple.
Founded in 2002, pureplay retailer ModCloth achieved $100 million in annual revenue after 10 years with $63.7 million in funding. Evolved retailer Birchbox grew more quickly with less capital, achieving $125 million in sales with $11.9 million in total funding only four years after its founding. Following the route of Birchbox, ModCloth recently announced it will open a permanent store in 2016.
Stores are more than a marketing expense — they can also self-fund. Stores account for at least 20 percent of sales for Blank Label, AYR, and BaubleBar and many evolved retailers have reported higher average order values in-store, where sales associates can up-sell customers.