Don't Close Your Stores Just Yet

This is certainly the case for Toys"R"Us and its 875 Toys"R"Us and Babies"R"Us stores in the U.S. As for the reasons why brick-and-mortar stores are still smart investments for retailers, there are a couple of inherent advantages to the channel, Storch said:

• shopping in-store is a national pastime for many, especially women;
• some product categories are better suited to be shopped for in-store (e.g., apparel); and
• the immediacy of the store experience.

Physical stores make sense for retail brands from a P/L perspective as well. Stores are the most efficient delivery vehicles for products, Storch noted. Everything bought in-store is free shipping. In addition to not having to pay the costly shipping expenses that online retailers are burdened with — "free shipping" has to be paid for somewhere, Storch said — brick-and-mortar retailers can offer high-quality customer service that can be hard to find when shopping online.