Retail strategies of B&M retailers against their Bricks and Clicks counterparts

The war between the mainstream brick and mortar retailers and the recent generation of on-line retailers is fought tooth and nail.

The next big battle is Thanksgiving.

This year, the traditional retailers in the U.S. are fighting for the share of the $586 billion dollar pie of consumer spending. According to National Retail Federation, 16% of this pie will be eaten by the online business.

What can retailers do to make sure they tap into this attractive slice of the market share?

One of the biggest challenges for traditional retailers is that it is so hard to fight with the online retailers on prices. Things like improving delivery and return options - same day delivery, free returns, free shipping - increasing on-line security and growing assortment of goods make shopping online so much easier for customers.

Here are the strategies that the bricks and mortar retailers have been using to combat their nemesis:

1. Exclusive merchandise (i.e. celebrity brands)
2. Lobbying for sales taxes on online purchases (WalMart against Amazon)
3. Unique bar codes on packaging to reduce "showrooming"
4. In-store pick up of online purchases / in-store returns for online purchases
5. Live events: concerts, cooking classes, etc.
6. Unique bonus content on DVDs and music CDs (Target and WalMart)
7. Rewards programs

Additionally, the retailers like WalMart, Target, Macy's, J.C. Penny, have been working hard at extending their online presence too. They figure that they can fight Amazon, Gilt Group and eBay on their turf. Price matching, same-day shipping, in-store kiosks, mobile checkouts, offering unique experiences and unique merchandise are the weapons in the arsenal of b&m retailers. They are fighting back and may very well succeed at this.

After all, maybe the pure online retailing is just a fad...