Do Online Pureplays Need Stores?


While some believe digital pureplay retailers have omnichannel all figured out, others might say, “Not so fast.”

These companies have become retailing powerhouses by selling through only two channels—online and mobile. But according to retail analysts, their future growth depends on stretching their businesses into other channels of distribution. “There is a breakpoint in sales, about $100 million, beyond which it’s difficult to grow further without becoming omnichannel,” said Joe Feldman, senior managing director of Telsey Advisory Group.

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