Homechoice is adding to its omni-channel retail offerings with plans to open a number of new physical store in 2025. Picture: AI lab
EDWARD WEST
edward.west@inl.co.za
Homechoice, the JSE-listed omni-channel retailer that does most of its transactions digitally, plans to grow its brick-and-mortar stores to close to 60 by the end of this year from 37 showroom stores, the company said Tuesday.
With online shopping continuing to flourish in South Africa and transforming the retail landscape, it’s easy to assume 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.
The e-commerce sector has seen remarkable growth that was accelerated by the COVID-19 pandemic. South Africa’s online retail sales reached R71 billion in 2023, making up more than 6% of total retail sales, according to research by World Wide Worx. Online retail sales were forecast to grow even further to up to 10% of the market by the end of 2025.
Notwithstanding this, 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, which demonstrates that physical stores play a critical role in influencing buying behaviour, even if the eventual transaction occurs online.
Homechoice CEO Chris de Wit said the same was true for South Africa. “We know our conversion rate in a showroom is higher than it is online.” Homechoice’s customers have the option to shop either online, through a catalogue, or in-store.
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.
De Wit said they actively seek 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. 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. “We’re embracing our customers’ needs and will leverage the strengths of both online and offline channels to meet their demands,” said De Wit.
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