With online shopping continuing to flourish in South Africa and transforming the retail landscape, it’s easy to assume that physical stores are becoming obsolete. However, a growing body of research indicates that brick-and-mortar stores still play a crucial role in driving sales and enhancing consumer experiences. This research is echoed by homechoice, who are aggressively expanding their footprint across the country with plans to grow from 37 showroom stores to close to 60 by the end of 2025.
The e-commerce sector has seen remarkable growth, especially accelerated by the COVID-19 pandemic. Online retail sales in South Africa reached R71 billion in 2023, making up more than 6% of total retail in the country, according to research by World Wide Worx, with online retail sales forecast to make up 10% of the market by the end of 2025. This trajectory illustrates the convenience and accessibility of online shopping, allowing consumers to purchase products from anywhere at any time. However, this trend does not signal the decline of physical retail; rather, it highlights a shift in how consumers engage with shopping.
A study by the Harvard Business Review found that 73% of consumers reported they were more likely to purchase a product after experiencing it in person (HBR, 2020). This demonstrates that physical stores play a critical role in influencing buying behaviour, even if the eventual transaction occurs online.
“The same is true for South Africa,” says Chris de Wit, CEO of homechoice, “we know that our conversion rate in a showroom is higher than it is online.” homechoice is an omni-channel retailer delivering innovative quality homeware merchandise directly to homes on simple credit terms, where customers have the opportunity to either shop online, through a catalogue, or in-store.
Brick-and-mortar stores also serve as vital components of omnichannel retailing strategies. Retailers are increasingly integrating their physical and digital experiences to create a seamless shopping journey. According to a report by McKinsey, companies that successfully implement omnichannel strategies see a 10-30% increase in customer retention and a significant boost in sales (McKinsey, 2021).
homechoice currently has 37 showroom stores and plans to grow this number close to 60 by the end of 2025. The company actively seeks out malls and retail facilities in areas that mirror their core demographic, so that they can provide that all-important real-life experience to customers.
In response to changing consumer preferences, many retailers are reimagining the in-store experience. The rise of experiential retail, where shopping is combined with unique experiences, has become a key strategy for attracting customers. Stores that offer immersive experiences, such as interactive displays, product demonstrations, or in-store events, can foster stronger emotional connections with consumers.
While the growth of online shopping has reshaped consumer behaviour and the retail landscape, homechoice believe that brick-and-mortar showrooms remain vital for driving sales and enhancing customer experiences. “We’re embracing our customers’ needs and will leverage the strengths of both online and offline channels to meet their demands,” concludes De Wit.
References
- Harvard Business Review (HBR). (2020). *The Future of Retail: Why Stores Still Matter.*
- McKinsey & Company. (2021). *The Omnichannel Advantage: How to Create a Seamless Experience.*
- World Wide Worx’ Online Retail in South Africa 2024 study)
