Brick-and-mortar retail is back:
But these brand names make one thing clear: we’re not returning to the pre-ecommerce era.
The rebirth of physical retail is powered by ecommerce.
What do ecommerce brands have that traditional retailers don’t?
Trial and error.
Using platforms like Shopify, these brands have iterated safely and affordably. They’ve failed fast. And, in the 20 years since the rise of ecommerce, they’ve cracked the code to growing faster: great customer relationships.
Now, they don’t just have the money for multichannel retail.
They have the experience, data, and insights to guarantee its success. They are more confident to risk brick-and-mortar overheads and staffing costs because they understand exactly what motivates customers to shop.
The future of retail has arrived.
Here’s what you need to know.
By testing and learning, Shopify brands have figured out what keeps shoppers coming back.
Over half are now using loyalty programs to make that repeatable and scalable. So, when they set up stores, those loyalty programs come with them to achieve the same result:
And so continues the cycle.
Online tactics deployed offline are working – and helping brands improve their physical stores. It’s reducing risk, and maximizing revenue.
Compare that to a traditional retailer. Without online engagement tactics like loyalty programs, they know far less about customers. They iterate slower and struggle to justify floor space.
US apparel brand EVEREVE has been through a transformation.
In-store experiences were previously “isolated” from those online, according to CTO Tamer Selim. It was a nightmare for staff and frustrating for customers. So, they moved to Shopify, and got a LoyaltyLion program, integrated with Shopify POS.
Now, customers shopping in-store earn points at checkout, and see them instantly appear in their account – ready to be redeemed anywhere.
Staff “love the way it engages with the customer now,” and the program was powering over 30% of their total revenue just months in.
Physical stores aren’t just passion projects of successful ecommerce brands.
For SKIMS, they’re becoming the “most powerful growth lever”, unlocking new audiences and growing awareness, before channeling new customers online where margins are better.
Loyalty programs are one of the best mechanisms for this:
The key is that your loyalty program should look and work the same across all channels.
This consistency means that, regardless of where your new customer shopped first, they know they’ll be rewarded wherever they choose to shop next.
Shopify brands Lucy & Yak and Waterdrop both encourage brand-aligned activities in-store – in this case, looking after the planet. It’s powering fast omnichannel growth for both.
Lucy & Yak gives points to members using their own bag, and Waterdrop hands out points to those who recycle packaging in-store.
Customers understand the brand’s values, recognizing them when they redeem points during a future purchase online.
The seamless connection from in-store to online helps boost the ROI of stores – and that means brands can get even more creative! Your in-store events or in-person activations pay off by establishing your physical presence faster.
It was an age-old problem: shoppers who buy your products from Target, Boots, Amazon and more are completely unknown to you. All you get is a sale – no data, no connection.
Now, brands are changing that by rewarding purchases anywhere.
With Receipt Upload features, brands like Tubby Todd allow customers to earn points whenever they buy the brand from Target and Amazon.
To earn points, customers need to be members of the loyalty program. This brings them into your online fold, where personalized interactions will help grow their lifetime value.
Over the last 20 years, ecommerce has trained shoppers to expect immediacy.
That expectation doesn’t disappear when they walk into a store. So, brands are making great experiences immediate across the omnichannel.
Loyalty Passes make that happen. They live in a customer’s digital wallet (think Apple Wallet, Google Wallet) and help you build lasting relationships. Here’s how:
Pureseoul is using LoyaltyLion’s Loyalty Pass to maximize all those benefits in their physical retail stores.
Cloud Club members with a pass can more swiftly check their points balance, earn ‘Beauty Miles’, and redeem them for free product rewards or money-off vouchers.
It’s exactly the experience their young audience expects: 78% of Gen Z won’t shop at stores where they can’t use a digital wallet.
Now, Pureseoul can turn first-time visitors to their store into lifelong customers.
Ecommerce brands aren’t making the shift to physical retail in isolation. They’re impacting the whole retail landscape in the process.
Beauty brand P.Louise was born on TikTok, before launching on Shopify and becoming one of the UK’s fastest-growing brands. They recently expanded into Boots, the 175-year-old British retail institution.
What’s unusual is that the launch helps Boots serve the Gen Z market like never before.
Boots’ Director of Beauty says the brand “truly understands the modern beauty consumer” and has helped them unlock “new and innovative” approaches. This comes from a retail leader that’s successfully adapted to 9 generations and thousands of trends over the years. At the same time, P.Louise founder Paige Williams says she did the collaboration “on her terms” and that it “feels nothing like traditional retail”.
So, how did P.Louise become the authority on Gen Z shoppers?
By testing and learning using their Royalty is Loyalty program, P.Louise has figured out exactly what makes their young fans shop more:
Their customers will spend more to unlock free gifts, shop with bigger baskets to climb the tiers and gain access to exclusive events, and open emails about available rewards.
The impact is undeniable: a huge 30% of their revenue comes from the loyalty program.
It’s no wonder every expansion decision has their community at its heart: their testing and learning means they can predict exactly how their fans will respond. Loyalty program insights inform every omnichannel move – from opening their own P.Louise City stores to choosing which third-party retailer to launch in first.
Born online, P.Louise isn’t just dictating the future of retail.
It’s changing the path of old-school retailers too.
Today’s most successful brands aren’t choosing between online and offline.
They’re doing both – and using tactics that grow the impact of both channels at once.
It’s all thanks to the low-cost testing, learning, and tweaking that ecommerce brings. For many brands, this has built genuine customer loyalty before ever signing a lease. It’s helped them know their customers, meet expectations faster, and expand at a startling pace.
Planning to open a store? A loyalty program is a must-have.
It brings the best of online shopping – personalization, rewards, and insights – in-store, powering repeat purchases across every channel and growing you faster than ever.
Inspired? Explore how LoyaltyLion can help you grow faster across every channel.
