Online pureplay,eSold.com.au, has opened its first bricks and mortar pop up shop in a bid to drum up its online subscription base. David Lamprecht, strategist at eSold, told Inside Retail PREMIUM the 21sqm pop up store, which has been open for three months on Melbourne’s Swanston St, is successfully attracting 2500 new online subscriptions a week. As an instore incentive, visitors to the pop up who provide their email receive a 10 per cent for use online, while those purchasing instore
and providing an email receive an additional 10 per cent discount on items purchased at the pop up.
“Because we’ve got that discount code, we are actually able to track and see that people who have been instore are going online and buying,” said Lamprecht.
The bricks and mortar pop up is being used as an experiment to observe customers buying behaviour, says Mark Friedin, a consultant for eSOLD.
“We’ve got a lot of stock in the warehouse, so we just thought, let’s test the waters and see what sells instore versus what sells online,” said Freidin.
“We found we were able to move slow moving items of stock that we can’t sell online.
“For some reason, the touch and feel legitimises the ability to buy,” said Friedin.
ESold.com.au stocks a variety of heavily discounted products including groceries, electronics, white goods, cosmetics, and kitchen appliances.
The pop up store sells a rotating range of the products available online, and every 10 days new products are trialled. It has found that gimmicky items have been the best sellers.
“The volumes of stock sold out of the shop each day have been beyond expectation,” said Lamprecht.
“Fortunately, we are in a position to be able to test a multi-channel approach and supply product that meets both types of consumers buying behaviours.”
Being a discount retailer makes a lot of people wary about buying online, Lamprecht says.
“I think having a bricks and mortar store legitimises the online and makes it more believable.
“Some people thought the pop up shop was a gimmick, so we put a big sign on the wall saying all products come with a one year warranty, and that legitimised the shop.”
Being a pop up, eSold is not bound to stay in one location, and in two weeks will move to Melbourne’s Elizabeth St.
“We’re doing an experiment on how the buying behaviour changes in different locations,” said Friedin.
From Christmas onwards, the brand will begin looking for a permanent store location.