Google says e-commerce hasn’t destroyed bricks-and-mortar for good
Omnichannel is starting to take precedence though
When you purchase through links on our site, we may earn an affiliate commission.Here’s how it works.
Retail has been forced to go all-in on digital during the pandemic, but bricks-and-mortar stores still have an important role to play. As a matter of fact, as stores slowly begin to reopen, people are returning toin-store shoppingas an omnichannel approach takes precedence.
That’s according to a new report fromGoogle’s parent company Alphabet. In its recent Q3 2021 financial results, Chief Business Officer Philipp Schindler said ad sales in the digital sector experienced “explosive growth” over the last 20-something months.
“But, as the world begins to reopen, shoppers are returning to stores," he said. “Brick-and-mortarisn’t dead. Instead, omnichannel is in full force.”
Retail driving omnichannel growth
One of the key pieces of evidence supporting this claim can be found in Google search queries. Compared to last year, queries “stores open now near me” are up four times.
“As a result, we’ve seen more advertisers include in-store sales alongsidee-commercegoals to drive omnichannel growth,” Schindler added. “Adoption has nearly doubled over the past year.”
During the earnings call, Schindler took Kohl’s as an example. A fortnight after it was forced to close more than 1,000 of its stores, the retailer launched curbside pickup. Soon after that, it tested local inventory ads and went “all in” onomnichannelbidding across its paid search portfolio. As a result, Q2 net sales went up by almost a third (31%) year-on-year.
Overall, Alphabet’s Q3 results beat analyst estimates, as its revenues went up 41%. Most of the revenue (around $59.88 billion) came from Google Services and its advertising business, as ad revenues hit $53.13 billion, up from $37.01 billion a year ago.
Are you a pro? Subscribe to our newsletter
Sign up to the TechRadar Pro newsletter to get all the top news, opinion, features and guidance your business needs to succeed!
Most of the revenue was contributed by retail, followed by media and entertainment, finance, and travel.
Sead is a seasoned freelance journalist based in Sarajevo, Bosnia and Herzegovina. He writes about IT (cloud, IoT, 5G, VPN) and cybersecurity (ransomware, data breaches, laws and regulations). In his career, spanning more than a decade, he’s written for numerous media outlets, including Al Jazeera Balkans. He’s also held several modules on content writing for Represent Communications.
iStorage Group acquires Kanguru Solutions as it looks to expand security offering
Phishing attacks surge in 2024 as cybercriminals adopt AI tools and multi-channel tactics
Smeg Combi Steam Oven review: a multi-functional countertop oven that looks stunning and cooks well
