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North Rhine-Westphalia (NRW) has launched an exciting funding program

Under the title “Rethinking Digital and Brick-and-Mortar Retail,” projects are being funded with up to €12,000, covering 90% of the costs. That’s a bold move—one that should shake up the retail sector. The goal is clear: to support retail during the current crisis. But how is that supposed to work?

Since we’ve been active in the eCommerce sector for almost 20 years now, and since this funding program is practically tailor-made for us, I’d like to share a few key thoughts on the matter.

For many years now, terms like multi-channel or omni-channel have been circulating through the eCommerce world. And even though the basic ideas behind them are sound, I personally don’t think much of these terms. The term channel gives the impression that I, as a business, should be present across various platforms—website, print, marketplaces like Amazon or eBay—and that everything will automatically improve. But that’s simply not the case.

As soon as you, as a retailer, start thinking in terms of channels, you’ve essentially already lost—at least in our experience. You might as well invest the money elsewhere.

We’ve long been convinced that you shouldn’t think in terms of channels at all, but rather from the customer’s perspective. A great anecdote to illustrate this is a survey conducted among young people that asked:

How many hours a week are you online?

A large portion of the respondents answered:

Never.

This response clearly shows how a large part of today’s customers think. People are no longer simply “online” or “offline.” Their phone is always with them. The internet is always there—even if they’re not consciously aware of it. And that fact is crucial. The internet is neither a channel nor a competitor. It’s a constant companion.

A digital strategy must take this reality into account.
In my opinion, it would be short-sighted to simply set up a website and then claim to be digital. That kind of investment will never pay off. A digital strategy runs through all aspects of retail operations.

A website must be integrated.

Your website should show what’s available in-store, what your products can do, and what services you offer alongside them. This includes real-time availability, as well as the ability for customers to book services directly on the site.

Why is this so important? We only need to look at what customers value most about the internet. For years, high on that list is the ability to research products outside of business hours. That’s where you need to be present. Because how else can you demonstrate your expertise if you don’t even inform people about your products?

We often see online shops that lack key features:

  • No local availability info

  • No reservation option

  • No added value or service info

These sites are essentially worthless to brick-and-mortar retailers. They’re now competing directly with online giants—and trying to match their prices. That’s a losing game, because physical retailers can’t survive on the thin margins of pure online sales.

The website is your digital store interface

A good website must not be a one-way street. You need to make sure your customers see it for what it is: the digital interface to your physical store. The simplest method? Use QR codes on price tags that link to product pages. This gets customers used to your site. They can read more while in-store and inform themselves—any time of day or night.

“Do good and talk about it”

Digitalization also means visibility through digital media. In practice, many retailers fail at the most basic step: communicating what they offer.

  • What do you sell?

  • What is your core product or service?

  • Why should anyone shop with you?

Your core message must be clear and quick to grasp. If your website doesn’t answer why someone should buy from you, you have a strategic problem. "Because we're local" is not enough.

You must also maintain your “digital storefront” across all customer touchpoints—not just your website, but also:

  • Your Google Business entry

  • Your Google Maps listing

  • Your Google or Trusted Shops reviews

  • And of course: being found through Google (SEO)

Digitalization goes beyond just being online

While a well-integrated, informative website is a key piece, digitalization is much more. It includes investing in modern hardware and streamlining your processes. Need a few ideas? How about:

  • A live inventory system that updates itself

  • Simplified year-end inventory counts

  • Automatic data transfers to your accountant or bookkeeping software

  • (Semi-)automated supplier orders

  • (Semi-)automated customer care

  • Automated marketing campaigns—online and offline, digital and physical storefront

Digitalization allows you to structure and automate processes. Automated systems are less error-prone, more robust, and cheaper. And cheaper means higher margins—which gives you room to focus on the real strength of physical retail: customer service.

Digitalization brings opportunity

If you want to compete with online retailers, you need to offer something they can’t—because shopping with you comes with drawbacks:

  • I have to travel to your store

  • I need to find parking

  • I may have to wear a mask

  • I have to deal with other shoppers

  • I have to carry everything to my car

  • And the product might not even be in stock

These pain points are very real for customers—and they don’t exist online. There, I get my package in a few days, delivered to my door. We must compensate for these disadvantages—and sometimes we simply can't. So we should leverage what we can.

Examples:

  • Customer doesn't want to carry items? → Offer local delivery.

  • Product not in stock? → Show availability online.

  • Mask-wearing a problem? → Let them try items at home.

For every challenge, there’s a solution. And then you can truly play to your strengths:

  • Do you offer tailoring?

  • Do you offer personalized advice?

  • Do you rent products?

  • Can customers see and try out items in person?

The internet can’t easily replicate those things. Online shops make money through margin and scale. Personalized service doesn’t scale—but that’s exactly your strength. It’s time to use it.

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