The biggest challenges faced by these stores is definitely the rent they pay for the location. Since these stores need a premium location in a popular street or a mall for a higher footfall - these locations have have rents as well which makes it difficult for a company to sustain - especially if it is new.
Other difficulties would be:
- Having to produce extra stock and display it at the store - this would lead to damage of the goods as well - which is generally sold at a mark-down
- Having to pay the store staff / security / visual merchandiser / cleaners / etc..
- Theft is a major issue when it comes to brick and mortar stores.
- The ambience must be created - good enough for a customer to shop with ease - this can be quite a challenge as enough research needs to be done before the same. If it is not done correctly the store may lose out on a lot of potential customers.
- With an online-store the customers can view and compare all the clothing in terms or price and look. Sometimes in an actual store the merchandise may be limited as per the size as compared to an online store.
Although it has its advantages - there are a number of problems faced and if the planning and execution is not done well - it can lead to failure.