Target’s CEO Explains Why Online Shopping Alone Won’t Cut it for Retail Brands

For retail brands across the globe, the importance of having a strong online presence and e-commerce store is continuing to grow. However, that doesn’t mean that the industry is going to be solely about online sales in the near future. That’s why the CEO of Target, Brian Cornell, told CNBC that it’s still crucial for retail companies to invest in their brick and mortar locations.

During an appearance on CNBC’s “Squawk Box,” Cornell said, “The winning retailers of the future are going to combine great physical assets with the ease that comes along with that digital interaction. For the foreseeable future, the majority of U.S. retail sales will still take place at stores.”

The importance of brick and mortar retail stores isn’t something that’s limited to Target—retail franchises need to focus on the strategy behind their physical locations even as e-commerce continues to become more popular. While neither side of the business can be overlooked, how consumers think and feel upon entering or exiting a store in-person will make or break their overall impression of a brand, which will then determine their level of loyalty.