From Virtual to Physical: Alexandre Allard’s Shift in Business Philosophy

Alexandre Allard is a French entrepreneur who first made a name for himself in the tech industry. He co-founded several successful virtual companies in the late 1990s and early 2000s, including ContactOffice, an online contact management service, and CCM Benchmark Group, one of the world’s largest tech focused investment banks. 

Allard had a keen eye for spotting digital trends and built innovative products and services for the web. He rode the dot com boom to great success, earning a reputation as one of Europe’s most forward-thinking internet entrepreneurs.

At his peak, Allard was operating almost solely in the virtual, online realm. But in the late 2000s, he began to shift his philosophy toward the value of physical retail spaces. This evolution ultimately led Allard to found Showroomprivé.com, an e-commerce company that also incorporates brick-and-mortar stores, and Groupe GO Sport, a sporting goods retail group.

Allard’s Pivot to Physical Retail

Alexandre Allard built his career as a successful e-commerce entrepreneur, founding popular European online retailers like C-Discount. However, starting around 2010, Allard began shifting his business strategy to focus more on physical retail spaces. 

He started acquiring major stakes in established brick-and-mortar retailers that were struggling to adapt to the rise of e-commerce. In 2011, he bought a 25% share of sporting goods giant Decathlon. He continued investing in other prominent retail brands over the next few years, including acquiring majority control of home goods retailer Maisons du Monde in 2013.

Allard realized that pure online retail had limitations, especially in Europe where e-commerce was slower to take off compared to the US. He saw opportunities to revitalize traditional retailers by injecting new digital strategies and innovations into their business models. Allard aimed to bridge the gap between digital and physical spaces, pioneering an omnichannel approach before it became mainstream. His investments signaled a pivot in philosophy, demonstrating his belief that the future of retail would depend on a balanced integration of online and offline channels.

Challenges of Online-Only Business Model

Alexandre Allard recognized some key limitations and challenges with operating a purely online, e-commerce business model. Despite the efficiencies and reach of the internet, he saw that virtual retailers faced difficulties building meaningful customer relationships and brand loyalty. Without physical stores, customers lack an immersive brand experience and retailers miss out on valuable customer data and feedback.

Online-only businesses also have a hard time managing logistics and achieving fast, flexible delivery. They are reliant on third party shipping and transportation providers without control of the full delivery chain. Inventory and warehouse management can be complex with no local store inventory. Returns and exchanges become more cumbersome without local retail locations.

Marketing and customer acquisition takes greater effort and investment for virtual companies. Brick and mortar stores provide built-in marketing and visibility. Without foot traffic and local awareness, e-commerce brands need large digital marketing budgets to attract customers.

Building an emotional connection with customers and a memorable brand identity is also challenging in a purely digital environment. Physical stores allow customers to directly experience products, interact with brand representatives and immerse themselves in branded spaces. This leads to stronger brand affinity and loyalty.

Benefits of Physical Retail

The pivot to physical retail offered Allard and his companies several advantages that a purely online model lacked. Opening physical stores enabled more immersive brand experiences, greater customer engagement, and the ability to showcase products in person. 

With physical stores, customers could see, touch, and try on products like eyewear and clothing. This helped enhance the customer experience and brand perception. Physical stores also allowed for experiential retail with interactive elements that brought brands to life.

In addition, physical retail provided an omnichannel experience that integrated online and offline. Customers could browse, purchase online, and pick up in store. They could also return online purchases at physical locations. This provided more flexibility and convenience.

Physical stores also gave brands greater visibility and discovery. With prominent store displays and signage, they attracted foot traffic and enabled serendipitous purchases. Staff could provide personalized service and recommendations as well. This led to higher conversion rates and sales.

Overall, physical retail allowed Allard’s brands to better showcase their products, enhance service, and drive sales through an integrated omnichannel experience. The human touch of physical stores brought brands closer to customers as well.

Key Physical Retail Investments

Alexandre Allard has made major investments in several prominent retail companies as part of his shift to physical retail. 

In 2013, he acquired British retailer New Look for $1.3 billion. Founded in 1969, New Look is a women’s fast fashion brand with over 800 stores globally. Under Allard’s ownership, New Look has aimed to revamp its fashion offerings and store concepts to appeal to its core demographic of 18-35 year olds.

Allard also founded Belgian footwear retailer Torfs in 1969. The company has over 100 stores in Belgium and Luxembourg. Torfs aims to differentiate itself through customer service, often having employees measure customer’s feet rather than just picking shoes off the shelves. 

In 2016, Allard acquired a majority stake in Belgian chocolate retailer Neuhaus for over $150 million. Founded in 1857, Neuhaus is known as one of the pioneers of praline chocolates. Allard has sought to accelerate Neuhaus’s international expansion, including investments in China.

Overall, Allard’s hands-on management and strategic vision for these retailers demonstrates his commitment to innovating in physical retail. By acquiring established brands with growth potential, he has built an impressive portfolio of brick-and-mortar companies.

Brick and Mortar Innovation

Alexander Allard’s physical retail brands have innovated in various ways to create exceptional in-store experiences. 

At Kookaï, Allard focused on store layout and visual merchandising to make shopping fun and engaging. Stores featured decorative elements like lush greenery and swinging chairs to encourage customers to relax and explore. Thoughtful product displays told a stylistic story and made key pieces stand out. 

Allard also innovated with technology to merge digital and physical experiences. At Comptoir des Cotonniers, interactive screens let customers browse additional inventory and request items for fitting rooms or purchase. Digital look books and smart mirrors enhanced the dressing room. 

To drive customer loyalty, Golden Goose created invitation-only VIP shopping nights with special discounts, cocktails, and live DJ sets. Courir stores featured interactive zones for kids to play and adults to create custom sneaker designs.

By thinking creatively about the in-store experience, Allard was able to make physical retail exciting and differentiated. His innovations helped his brands provide exceptional service and connection.

Omnichannel Strategy

Alexandre Allard recognized the value of blending physical and online retail to provide a seamless customer experience. He invested heavily in omnichannel capabilities that connected the digital and brick-and-mortar worlds. 

Some of the key omni channel initiatives included:

– Offering buy online, pick up in store and ship to store options

– Providing in-store returns for online purchases

– Integrating store inventory with online to enable endless aisle shopping

– Implementing mobile point-of-sale (POS) systems to checkout anywhere in store

– Using digital screens and QR codes in stores to showcase online selection  

– Providing WiFi and device charging stations in stores to facilitate mobile shopping

– Launching mobile apps with location-based features and digital coupons

By bridging the gap between physical and digital, Allard aimed to meet customers however and wherever they wanted to shop. This seamless omnichannel experience was designed to blend the convenience of online with the experiential benefits of brick-and-mortar retail. Allard saw omnichannel capabilities not just as an add-on, but as an integral part of delivering excellent customer service. The strategy helped strengthen loyalty across all touchpoints.

Vision for the Future  

Alexandre Allard sees immense potential in the convergence of physical and digital retail. He believes we are only beginning to tap into innovative possibilities in areas like mobile technology, interactive stores, and experiential shopping. For example, stores could have changing room mirrors that suggest complementary items or interactive screens that provide reviews and styling advice. 

Allard envisions stores seamlessly integrating the convenience of online shopping with the immersive benefits of physical retail. Customers could browse merchandise remotely and then stop by the store to try items on or pick up purchases. Retailers could offer personalized recommendations and experiences tailored to customers’ preferences and histories. Data and analytics will enable stores to provide an unparalleled level of customization.

In Allard’s view, future stores will showcase cutting-edge technology but still retain the human touch. While automation and AI will streamline operations, brands should still train employees to build connections with customers and provide expertise. As retail continues evolving, Allard believes retailers must keep the focus on creating delightful, memorable experiences that keep shoppers coming back. The interplay between physical and digital will open up creative possibilities for the future of shopping.

Key Takeaways

Alexandre Allard’s career shift from leading online retailers to investing in physical stores represents a major change in business philosophy. Despite finding huge success with digital pure-plays like RueDuCommerce, Allard came to believe that an online-only model had serious limitations. 

Opening physical stores has allowed Allard to provide a more engaging customer experience, showcase products in-person, build deeper brand loyalty, and grow revenues through omnichannel sales. Key investments like Poliform and the revival of La Grande Récré showcase Allard’s strategy of revitalizing traditional retailers by fusing digital capabilities with in-store experiences.