Why digital brands like Netflix and Wayfair are betting on physical stores

Ecommerce may be thriving, but brick-and-mortar retail remains a critical brand touchpoint. Companies like Netflix and Wayfair are proving that physical stores aren’t just about transactions — they’re influential brand ambassadors that shape perception and loyalty. 

The challenge is clear: How can brands create in-person experiences that draw people in and build lasting connections? The answer lies in what digital shopping lacks — an immersive, customer-centric experience that deepens emotional engagement in a way online interactions can’t.

Retail as the ultimate brand ambassador

For years, retail KPIs focused on revenue per square foot. But this thinking misses a key point — brick-and-mortar is not just about selling. In today’s digital world, it’s about branding and customer engagement.

Netflix is preparing to open physical stores by the end of 2025. This might seem out of step with its digital-first model, but it isn’t opening stores just to sell more subscriptions. Instead, it’s turning physical spaces into interactive brand experiences.

Imagine a store where you can enter the world of Stranger Things or have an immersive experience tied to Bridgerton. These spaces are designed to evoke emotional connections and drive engagement. It’s about creating an experience that sticks with people long after they leave.

This idea isn’t unique to Netflix. Other ecommerce-first brands like Warby Parker and Wayfair are also leaning into the experiential aspect of physical stores.

Warby Parker, which began as a digital-first company, now operates dozens of stores. It blends ecommerce convenience with in-store expertise, letting customers try on frames in real life while enjoying digital features like virtual try-ons. The store isn’t just another place to buy glasses — it’s an extension of the brand experience, serving as a product showroom and an embodiment of Warby Parker’s customer-first ethos. 

Wayfair is also expanding its physical retail footprint to enhance customer engagement and brand presence. In May 2024, the company opened its first large-format store in Edens Plaza in Wilmette, Ill. The two-story, 150,000-square-foot space offers a comprehensive selection of home furnishings, decor, housewares, appliances and home improvement products. It also features an on-site restaurant, The Porch, providing customers with a holistic shopping experience.

Dig deeper: How to build trust and loyalty in retail with reception marketing

Moving beyond revenue-focused KPIs

If retail is a brand ambassador, businesses must consider how they measure success. Stores are as much about driving brand awareness, loyalty and advocacy as they are about sales. That’s why CMOs must rethink what success looks like for physical stores.

Instead of focusing solely on revenue, consider engagement metrics. How many people visit, participate in in-store experiences, share their visits on social media and return after their first visit?

Apple provides a strong example of how brick-and-mortar stores serve as brand ambassadors while maintaining a strong focus on product sales. Apple Stores serve as key touchpoints for new users to:

• Engage with the Apple ecosystem.
• Receive expert support.
• Experience the brand’s premium customer service. 

By focusing on hands-on product interaction, personalized service through the Genius Bar and community-building events, Apple keeps physical retail at the core of its strategy — seamlessly blending sales with brand engagement.

Amazon, on the other hand, has taken an evolving approach to physical retail. While it launched multiple brick-and-mortar concepts — including Amazon Go, Amazon Fresh and Amazon 4-Star — the company scaled back several initiatives, suggesting physical stores must provide a unique value beyond convenience alone. 

However, its investment in Whole Foods and continued refinement of Amazon Fresh indicate that the company sees a role for brick-and-mortar in categories like grocery, where immediacy and tactile shopping are essential. Amazon’s experience underscores that physical stores succeed when they complement, rather than replicate, the online shopping experience.

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The future of retail: Brand experience and customer connection

At the heart of modern brick-and-mortar strategies is customer-centricity. For too long, physical stores were designed around efficiency and profitability. However, brands winning in this space put the customer experience front and center.

Everlane initially resisted opening physical stores, with its (former) CEO famously stating he would shut down before going brick-and-mortar. However, customer demand proved otherwise, and in 2017, Everlane opened its first store in New York City. As the company realized, customers still want to touch products before they buy. This shift fueled Everlane’s physical expansion and contributed to its most profitable year in 2023.

Physical stores aren’t making a comeback—they are evolving. The brands that thrive will be those that understand the true role of brick-and-mortar: to serve as brand ambassadors and customer experience hubs. Refining KPIs beyond revenue and focusing on customer-centric retail strategies can build long-lasting relationships and loyalty in ways that online channels can’t match.

For marketing leaders, this is the next frontier — a chance to rethink the purpose of physical spaces and unlock new opportunities to connect with customers. The question isn’t whether to open a store but how to make that store a true extension of the brand and a driver of customer loyalty.

Dig deeper: 7 ways to boost customers’ emotional connection and loyalty with your brand

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