Blumenthal: Physical stores cause brief e-commerce cannibalization but expand overall demand
Neil Blumenthal · Framing the future of eyecare with Neil Blumenthal and Dave Gilboa of Warby Parker · Dec 14, 2023 · at 21:59
Neil Blumenthal, co-founder and co-CEO of Warby Parker, explains to Guy Raz how brick-and-mortar retail stores expand their total addressable market rather than simply shifting existing sales.
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“What we found is that if we're going into a new market and we open up that first store, there is some e-commerce cannibalization for a short period of time. The way to think of it is there's a certain size pizza in that market. The store comes. There's a bunch of people who have been buying online who actually prefer to go in store. So once that store is there, they start going there. But having that store there Increases awareness. It increases the size of the pie.”
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