That's what you are reading these days ... the pundits enjoy lauding "digitally native" brands for opening stores. "It's proof positive that retail matters and that an omnichannel approach is a smart bet in a confusing customer landscape".
If you've ever worked in retail, you know that when you open a store a cascading series of events happens, resulting in the store not performing at the level your reporting tells you it performs at.
Here's what happens, especially when you already have a store in a market.
Let's evaluate what happened.
- When a new store was opened, the existing store suffered. Some customers from the existing store (actually, many customers) switched store preference, causing the existing store to perform considerably worse.
- When a new store was opened, online sales declined. This is a common outcome in year one of a store opening. Customers who used to shop online find the new store convenient, and they switch allegiance. Again, this is a year one phenomenon. After year one, the store begins sending customers online at rates that cause online sales to increase. Your mileage will vary.