Has the Reduction of Physical Stores Reduced your Loyalty to Certain Businesses

Written by Tom Peace

In recent years, there has been a shift in the retail sector, causing many businesses to close their physical locations and conduct their day-to-day operations through e-commerce websites.

This happened frequently during the COVID lockdowns because businesses sought to discover new methods to interact with their consumers. Customers had to adjust to the temporary lifestyle, which was beneficial to businesses, and in many ways boosted e-commerce practices. Many companies, however, have continued to close their doors while maintaining significant profits throughout the year.

This has led The Loyalty People to pose the following question to you.

"Has the reduction of physical stores reduced your loyalty to certain businesses?"

Companies have been able to establish seamless relationships with customers by employing technology, such as e-commerce applications, loyalty programs, and card linkage. This technology has assisted businesses in developing new customer engagement and retention tactics, allowing more customers to purchase online rather than in-store.

Having said this, not all customers like online shopping and instead prefer a more traditional customer journey. However, there are other reasons why instore shopping outnumbers internet purchasing.


For starters, research has shown that people are more inclined to purchase a product after seeing it in person. This may be limited to specific items, but shopping in stores allows the buyer to test the item before making a final selection.

Secondly, certain shops may learn about their customers' behaviours by observing them interact with certain items; this knowledge alone can be used to develop customer engagement tactics at no further expense.

Furthermore, some shops still profit from providing high-quality one-on-one service to clients. One advantage of physical businesses is that you may develop an emotional connection with your customers and assist them with their purchases. This can naturally boost retention.


With all of the benefits described above, there is one advantage of online shopping that surpasses all of the benefits of traditional businesses, and that is convenience.

Because many individuals lead busy lifestyles, the prospect of coming to a store after work or making a long-term commitment might be intimidating. This increases flexibility in the customer experience, and many businesses have witnessed improved engagement and retention as a result of online practices.

More and more sectors are adopting online services, leaving high streets empty, however, does this make a significant impact on the ordinary shopper?