More and more e-commerce brands are opening a physical store because an offline presence has been proven to contribute to brand trust, customer loyalty, and higher average order values. The barrier to starting online is low, but the barrier to growing becomes higher as digital advertising costs rise and consumers become more discerning. For brands that have already proven their concept, a physical retail location is often the next logical step. This article answers the most frequently asked questions about that transition: from the benefits and risks to choosing the right location.
What do online brands gain from a physical location?
A physical store gives e-commerce brands something a website can never fully provide: tangible brand contact. Customers can feel, try on, and experience products. That lowers the barrier to purchase and increases the likelihood that a customer will return. For brands that have until now operated exclusively online, a store is also a powerful signal of credibility and longevity.
On top of that, a physical location puts the brand experience entirely in your own hands. Where a webshop competes on a screen full of distractions, in a store you control the atmosphere, the music, the scent, and the presentation. That total experience builds loyalty that is difficult to replicate digitally. Brands that invest in a strong retail formula typically see higher customer satisfaction and more word-of-mouth referrals.
Moreover, a store provides direct customer data that is difficult to collect online: which products attract attention, where people linger, what they ask about. These insights improve both the physical and digital offering.
How does a physical store affect online sales?
A physical store boosts online sales by increasing brand awareness and building trust among consumers who would otherwise never place an order. This effect is known in the retail industry as the halo effect: the presence of a store in a city or region demonstrably leads to more website traffic and online purchases from that same area.
The explanation is straightforward. Consumers who have seen or touched a brand in real life are more confident about their purchase. They know what to expect in terms of quality and service. That lowers the mental barrier for an online purchase, even if they ultimately order from home.
A store also strengthens search engine visibility. A physical address provides access to local search results and Google Business listings, making the brand more visible to nearby consumers. For e-commerce brands looking to grow in specific cities or regions, that is an underestimated advantage.
Which e-commerce brands have successfully gone offline?
Several well-known e-commerce brands have successfully made the move to physical retail by deliberately choosing strong locations, a clear retail formula, and a seamless connection between online and offline. The common denominator is that they did not view offline as a replacement for their webshop, but as an extension of it.
Eyewear brands that started as pure webshops opened showrooms where customers could try on frames and then order online. Mattress and home brands that grew large online opened experience centers where consumers could test products that are difficult to evaluate digitally. Fashion companies that grew through social media used their first store as a marketing platform and community hub.
What these examples have in common: they did not choose a random location, but a spot with high foot traffic and the right target audience. The location choice was in every case a strategic decision, not an afterthought. That is precisely why brands taking this step increasingly seek professional guidance in finding the right retail space in the right location.
When is a physical store the right step for an online brand?
A physical store is the right step when an online brand has proven its concept, has stable revenue, and has customers who are actively asking for an offline experience. Those still in the process of validating their product or target audience are opening a store too early. Those who already know what works can accelerate with a physical location.
Concrete signals that the time is right:
- The webshop is operating profitably and has built a loyal customer base
- Customers regularly ask questions like “Can I see or try this somewhere?”
- Online advertising costs are rising while growth is leveling off
- The brand has a clear visual identity that lends itself to a retail environment
- Capital is available for rent, fit-out, and staff without impacting webshop operations
Timing also depends on the type of product. Products where experience, fit, or material feel plays a role lend themselves more readily to a physical presentation than products that can be evaluated entirely on specifications.
What are the biggest risks of a physical store for e-commerce brands?
The biggest risks of a physical store for e-commerce brands are high fixed costs, a poor location choice, and underestimating operational complexity. A webshop has few fixed costs; a store has rent, staff, fit-out, and maintenance that continue regardless of revenue.
A wrong location is the most costly risk. A property in a secondary location with little foot traffic does not deliver the desired brand effect and rarely justifies the costs. At the same time, the best locations are not always visible on public listing portals, meaning brands without a network or market knowledge settle for whatever happens to appear available.
Other risks to keep in mind:
- Long lease contracts without flexible options if results disappoint
- Underestimating service charges and additional rental costs
- Insufficient alignment between online and offline inventory management
- Too few staff or the wrong retail formula for the chosen location
Those looking to limit risks would do well to have lease contract terms thoroughly reviewed and to negotiate break options before signing. Guidance on leasing and letting by a specialized retail property agent prevents an enthusiastic start from turning into a costly mistake.
How do you choose the right location for your first physical store?
You choose the right location for your first physical store by combining three factors: the right concentration of your target audience, sufficient foot traffic volume, and a rental price proportionate to expected revenue. None of these three factors works well without the other two.
Start by asking where your customer already is. A brand targeting young adults looks for different streets than a brand aimed at families or seniors. Cities like Amsterdam, Rotterdam, Utrecht, and Eindhoven each have specific shopping areas with their own visitor profiles. But even in Groningen, Arnhem, or Den Bosch there are prime locations with high footfall that can work excellently for the right brand. Nationwide coverage is essential here: the best location for your brand does not have to be in the largest city.
What makes a location truly suitable?
A suitable location combines visibility, accessibility, and the right neighboring brands. Shopping streets and shopping centers with a strong footfall driver nearby benefit from shared visitor traffic. The presence of complementary brands on the same street strengthens the appeal for your target audience. That makes location analysis more than just a matter of rent per square meter.
Why the supply on portals is incomplete
A large portion of the best retail spaces in the Netherlands never appear on public portals such as Funda. Owners and developers fill vacated spaces through their network, often before any advertisement is needed. For an e-commerce brand without contacts in the retail property world, this means you only see what others have passed on.
KroesePaternotte is in daily contact with owners, developers, and shopping center managers throughout the Netherlands. With a database going back to 1984 and lease data covering virtually the entire Dutch retail market, we know exactly what a market-conform rent is per street and per city. That means we negotiate not on gut feeling, but on the basis of current market data. For a brand making the move to offline for the first time, that is the difference between a good location and the right location.
Want to know what is available at prime locations in your target city? Get in touch and we will explore the possibilities together.
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