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Five Ways Brick-and-Mortar Franchises Can Successfully Compete Against Online Merchants

By Evan Hackel

A franchise owner said to me recently, “I feel like a heavyweight prizefighter in a ring who is competing against a swarm of butterflies. I stand there swinging, but those butterflies, which is how I think of online businesses, are overpowering me because of their sheer numbers and resources. How can I ever compete?”

That franchisee, who sells a range of landscaping and home repair products, has a right to feel frustrated. The growth of e-commerce has transformed the retail landscape, giving consumers more choices and greater convenience than ever before. Online merchants can often offer vast product selections, easy price comparisons, and home delivery with just a few clicks. Yet despite these advantages, brick-and-mortar businesses can continue to thrive when they focus on strengths that online competitors cannot easily duplicate. The key is not trying to become an online retailer, but rather leveraging the unique advantages of physical locations.

Here are five proven ways traditional retail businesses can compete successfully and even outperform online merchants.

Winning Strategy One: Create Exceptional Customer Experiences

One of the greatest strengths of a physical business is the ability to deliver memorable, personal experiences. While online shopping is convenient, it is often impersonal. Customers who visit a store can interact with knowledgeable staff, receive immediate assistance, and enjoy an environment designed to make shopping enjoyable.

Businesses that train employees to be friendly, attentive, and solution-oriented often build stronger customer loyalty than online sellers. Whether it is a hardware store helping a homeowner find the right tool, a specialty retailer offering product demonstrations, or a clothing boutique providing personalized styling advice, the human touch creates value that no website can fully replicate.

Consumers may forget a low online price, but they remember outstanding service.

Winning Strategy Two: Emphasize Immediate Gratification

One advantage that physical stores possess is the ability to satisfy customer needs instantly. An online purchase often requires waiting days for delivery. A local business allows customers to see, touch, evaluate, and take home products immediately.

This advantage is particularly important when customers have urgent needs. A shopper may need a replacement appliance part, a last-minute gift, or supplies for a weekend project. Businesses should market the convenience of immediate availability and highlight products that customers can access right away.

By promoting “buy today, use today” benefits, brick-and-mortar retailers can appeal to customers who do not want to wait for shipping or risk delivery delays.

Winning Strategy Three. Build Community Connections

Online merchants may reach a global audience, but local businesses can develop personal relationships within their communities. Sponsoring youth sports teams, participating in local events, supporting charities, and collaborating with nearby organizations helps businesses strengthen their community presence.

Customers frequently choose to support businesses they know and trust. When owners and employees are visible participants in community life, they create emotional connections that large online retailers struggle to match.

Businesses can also host workshops, educational programs, demonstrations, or networking events that bring people together. These activities transform stores from simple places of transaction into valuable community resources. Customers who feel connected to a business often become its most loyal advocates.

Winning Strategy Four: Offer Expertise and Specialized Knowledge

Many online sellers compete primarily on price. Brick-and-mortar businesses can compete effectively by focusing on expertise instead. Customers often seek guidance, reassurance, and recommendations before making purchasing decisions.

Stores that become trusted advisors gain a significant competitive advantage. For example, a garden center can help customers select plants for local growing conditions. A technology retailer can explain product differences and help with setup. A sporting goods store can recommend equipment based on a customer’s skill level and goals.

This expertise reduces buyer uncertainty and increases confidence. When consumers believe that knowledgeable professionals are helping them make the right choice, they are often willing to pay slightly higher prices in exchange for peace of mind.

Expertise turns a retail transaction into a professional consultation, creating value that extends well beyond the product itself.

Winning Strategy Five: Integrate Digital and Physical Channels

Competing with online merchants does not mean ignoring technology. In fact, the most successful brick-and-mortar businesses combine the strengths of physical locations with digital tools.

Customers increasingly expect businesses to have websites, online inventories, social media presence, and digital communication options. Offering services such as click-and-collect ordering, online appointment scheduling, customer loyalty apps, and email promotions allows retailers to provide convenience while maintaining the benefits of in-person service.

Many consumers research products online before purchasing in a store. Businesses should ensure that their digital presence is accurate, informative, and easy to use. By creating a seamless connection between online and offline experiences, retailers can serve customers wherever they are in the buying journey.

Rather than viewing e-commerce as the enemy, smart businesses use technology to enhance the advantages of their physical locations.

In Conclusion . . . 

The future of retail is not a battle between online and brick-and-mortar businesses. Instead, it is about understanding and maximizing unique strengths. Physical businesses have powerful advantages, including personal service, immediate product availability, community engagement, specialized expertise, and the ability to blend digital convenience with face-to-face interaction.

Businesses that focus on these strengths can create experiences and relationships that online merchants find difficult to duplicate. In an increasingly digital world, customers still value human connection, trusted advice, and the ability to engage directly with products and people. Those qualities remain the foundation of successful brick-and-mortar retailing and will continue to provide a competitive edge for years to come.

Evan Hackel
Evan Hackelhttps://www.ingage.net
A dynamic, innovative, thoughtful and inspiring leader with 30 years of experience in franchising, distributed networks and cooperatives. Successful history of: (i) turning around a $700 million distressed franchise system into a $2.0 billion revenue business in four years, (ii) reviving and re-energizing a $3.5 billion revenue franchisor and (iii) founding three franchise systems. Experienced corporate board member. Currently, a consultant to some of the largest franchise systems in North America. A franchise industry leader, widely published, keynote speaker, member of the New England Franchise Association Board, and Co-chair of the International Franchise Associations Knowledge Share Task Force.
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