Hundreds of physical stores are expected to open from e-commerce retailers


Who says brick-and-mortar is dead?

A new study by JLL reports that e-commerce retailers plan to open at least 850 stores in the next five years. Mattress-in-a-box startup Casper will open 200 alone, along with clothing brands like Adore Me and footware company All Birds.

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These “clicks-to-bricks” retailers are most often (about 74 percent) apparel and accessory retailers, and half have high price points, according to the study.

“It makes sense that e-commerce retailers that sell apparel and home goods are looking to move into physical stores, since their products are the type consumers like to inspect in person,” said James Cook, JLL director of retail research for the Americas.

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An average store is about 2,800 square feet, a concept-sized store rather than one with a large presence.

“As these e-commerce brands mature we believe based on our research that those in the apparel and home good segments will continue making the transition to a clicks-to-bricks retail format,” Cook said.

Amazon sparked a major expansion into physical retail formats with its purchase of Whole Foods Market last year. It’s also opening small convenience-type Amazon Go stores.

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