What Is a Brick-and-Mortar Store? 6 Types of B&M Businesses

Brick-and-mortar refers to a business with at least one physical storefront. Before the internet, most traditional businesses operated solely as brick-and-mortar locations. However, the distinction became more common in the early 2000s to differentiate traditional storefront retailers from ecommerce businesses and companies that rely solely on online shopping.

There are a number of advantages to having a brick-and-mortar presence, including a controllable customer experience, face-to-face interaction with your customers, and instant gratification for your customers from making a purchase and taking it home. Brick and mortar locations also let small business owners showcase their products in an environment they can control and customize.

While the growth of ecommerce has upended the business model for many brick-and-mortars, there are still numerous businesses operating out of brick-and-mortar locations. Below are some examples of common brick-and-mortar stores.

1. 1. Department stores: Brick-and-mortar department stores selling a wide range of retail goods became popular in the United States in the mid-nineteenth century. Instead of specializing in one type of apparel, accessory, or luxury goods, department stores sell it all—cosmetics, men’s and women’s apparel, accessories, and occasionally homewares and appliances. Department stores now typically operate both an online store and a brick-and-mortar store, which provides a wider reach and helps them compete with large online retailers.
2. 2. Retail apparel stores: Retail apparel stores traditionally function as brick-and-mortar locations, giving their clientele the ability to try products on for size and fit before committing to a purchase.
3. 3. Specialty stores: Specialty stores carry an assortment of products that all fall under a single category of goods. Florists, bookstores, and furniture stores are all considered brick and mortar specialty stores.
4. 4. Grocery stores: Conventional supermarkets are brick-and-mortar establishments. Even if shoppers choose to have their groceries delivered, those groceries are often coming from a brick-and-mortar store where other shoppers are selecting and purchasing their own groceries.
5. 5. Convenience stores: Brick-and-mortar convenience stores are small retail businesses that stock a wide range of everyday items such as newspapers, snack foods, over-the-counter drugs, and toiletries. They offer customers the convenience of being able to purchase a variety of miscellaneous items that they need for immediate use.
6. 6. Service industry stores: Companies that operate within a service business model are especially suited to brick-and-mortar stores. These include restaurants, gas stations, hair salons, and auto repair shops. Many of these industries cannot switch to ecommerce, because they offer a service that must be rendered in person.

There are a number of potential advantages to operating a brick-and-mortar store, most of which have to do with customer connection. Below are some examples of why certain businesses may be better suited to physical stores.

1. 1. Foot traffic: The most obvious advantage of having a physical location is the spontaneous foot traffic that can attract new customers to your business. More customer traffic tends to lead to more sales, especially for new or small stores that may not have the budget for advertising.
2. 2. Staff: An attentive and helpful staff is one of the most valuable components of the in-store experience. When a customer is shopping inside a physical store, a staff member can answer their questions, provide recommendations, and even explain more about the products, all of which is mostly inaccessible to online retailers.
3. 3. Instant customer gratification: Having a physical presence means that customers can try on their products to see how they fit, feel, and look. Customers also don’t have to wait for their product to be shipped as they would with online sales, giving them instant gratification and convenience that they may return to later.
4. 4. Multiple payment methods: Online stores are limited to debit and credit card payments only. An offline local business typically uses a POS system that can accept cash and checks in addition to credit and debit cards. This attracts a wider range of customers, potentially boosting a store’s total retail sales.

The biggest disadvantage of owning a brick-and-mortar business is the lack of flexibility and overhead costs associated with operating an in-person business. Here is a breakdown of some of the potential disadvantages of owning a brick-and-mortar business.

1. 1. Rent costs: The expense of leasing a commercial space is often a brick-and-mortar business’s heftiest cost. Renting commercial real estate is far more costly than operating and maintaining a website. Commercial leases also may be strict, binding, and last for years even if the business has to close or wants to move. Add on the costs of utilities for operating the space, and a business’s overhead costs rise even further.
2. 2. Employee costs: Even if your business does not require salespeople, brick-and-mortar locations will require a staff to perform the basic store upkeep. Along with hourly rates or salaries, employees may also require benefits such as healthcare, tuition reimbursement, or pension plans, all of which will subtract from your bottom line.
   
3. 3. Limited reach: While foot traffic is definitely a bonus, it can only bring in so much business to a store. Even if a company has the resources to strategically place its brick-and-mortar stores in high-traffic and high-income areas, a business will be limited by its region. Companies that seek to have a global reach may benefit from operating solely as online businesses.
   
4. 4. Showrooming: Showrooming is when a customer visits a physical retail store to try merchandise before buying the same thing or something similar online. Retail outlets that have an online presence can benefit from this phenomenon, but it can take sales away from brick-and-mortar retailers.

Get the MasterClass Annual Membership for exclusive access to video lessons taught by business luminaries, including Howard Schultz, Chris Voss, Robin Roberts, Sara Blakely, Daniel Pink, Bob Iger, Anna Wintour, and more.

Brick-and-mortar refers to a business with at least one physical storefront. Before the internet, most traditional businesses operated solely as brick-and-mortar locations. However, the distinction became more common in the early 2000s to differentiate traditional storefront retailers from ecommerce businesses and companies that rely solely on online shopping.

There are a number of advantages to having a brick-and-mortar presence, including a controllable customer experience, face-to-face interaction with your customers, and instant gratification for your customers from making a purchase and taking it home. Brick and mortar locations also let small business owners showcase their products in an environment they can control and customize.

While the growth of ecommerce has upended the business model for many brick-and-mortars, there are still numerous businesses operating out of brick-and-mortar locations. Below are some examples of common brick-and-mortar stores.

1. 1. Department stores: Brick-and-mortar department stores selling a wide range of retail goods became popular in the United States in the mid-nineteenth century. Instead of specializing in one type of apparel, accessory, or luxury goods, department stores sell it all—cosmetics, men’s and women’s apparel, accessories, and occasionally homewares and appliances. Department stores now typically operate both an online store and a brick-and-mortar store, which provides a wider reach and helps them compete with large online retailers.
2. 2. Retail apparel stores: Retail apparel stores traditionally function as brick-and-mortar locations, giving their clientele the ability to try products on for size and fit before committing to a purchase.
3. 3. Specialty stores: Specialty stores carry an assortment of products that all fall under a single category of goods. Florists, bookstores, and furniture stores are all considered brick and mortar specialty stores.
4. 4. Grocery stores: Conventional supermarkets are brick-and-mortar establishments. Even if shoppers choose to have their groceries delivered, those groceries are often coming from a brick-and-mortar store where other shoppers are selecting and purchasing their own groceries.
5. 5. Convenience stores: Brick-and-mortar convenience stores are small retail businesses that stock a wide range of everyday items such as newspapers, snack foods, over-the-counter drugs, and toiletries. They offer customers the convenience of being able to purchase a variety of miscellaneous items that they need for immediate use.
6. 6. Service industry stores: Companies that operate within a service business model are especially suited to brick-and-mortar stores. These include restaurants, gas stations, hair salons, and auto repair shops. Many of these industries cannot switch to ecommerce, because they offer a service that must be rendered in person.

There are a number of potential advantages to operating a brick-and-mortar store, most of which have to do with customer connection. Below are some examples of why certain businesses may be better suited to physical stores.

1. 1. Foot traffic: The most obvious advantage of having a physical location is the spontaneous foot traffic that can attract new customers to your business. More customer traffic tends to lead to more sales, especially for new or small stores that may not have the budget for advertising.
2. 2. Staff: An attentive and helpful staff is one of the most valuable components of the in-store experience. When a customer is shopping inside a physical store, a staff member can answer their questions, provide recommendations, and even explain more about the products, all of which is mostly inaccessible to online retailers.
3. 3. Instant customer gratification: Having a physical presence means that customers can try on their products to see how they fit, feel, and look. Customers also don’t have to wait for their product to be shipped as they would with online sales, giving them instant gratification and convenience that they may return to later.
4. 4. Multiple payment methods: Online stores are limited to debit and credit card payments only. An offline local business typically uses a POS system that can accept cash and checks in addition to credit and debit cards. This attracts a wider range of customers, potentially boosting a store’s total retail sales.

The biggest disadvantage of owning a brick-and-mortar business is the lack of flexibility and overhead costs associated with operating an in-person business. Here is a breakdown of some of the potential disadvantages of owning a brick-and-mortar business.

1. 1. Rent costs: The expense of leasing a commercial space is often a brick-and-mortar business’s heftiest cost. Renting commercial real estate is far more costly than operating and maintaining a website. Commercial leases also may be strict, binding, and last for years even if the business has to close or wants to move. Add on the costs of utilities for operating the space, and a business’s overhead costs rise even further.
2. 2. Employee costs: Even if your business does not require salespeople, brick-and-mortar locations will require a staff to perform the basic store upkeep. Along with hourly rates or salaries, employees may also require benefits such as healthcare, tuition reimbursement, or pension plans, all of which will subtract from your bottom line.
   
3. 3. Limited reach: While foot traffic is definitely a bonus, it can only bring in so much business to a store. Even if a company has the resources to strategically place its brick-and-mortar stores in high-traffic and high-income areas, a business will be limited by its region. Companies that seek to have a global reach may benefit from operating solely as online businesses.
   
4. 4. Showrooming: Showrooming is when a customer visits a physical retail store to try merchandise before buying the same thing or something similar online. Retail outlets that have an online presence can benefit from this phenomenon, but it can take sales away from brick-and-mortar retailers.

Get the MasterClass Annual Membership for exclusive access to video lessons taught by business luminaries, including Howard Schultz, Chris Voss, Robin Roberts, Sara Blakely, Daniel Pink, Bob Iger, Anna Wintour, and more.