A "dark store" is a type of retail establishment that operates exclusively as an online order fulfillment center, rather than functioning as a traditional physical store open to the public. The term "dark store" derives from the fact that, from the outside, the establishment may appear closed or "dark," since it does not have customers entering and exiting as a typical retail store would.
These establishments are mainly used to meet the growing demands of e-commerce, especially in densely populated urban areas, where space to store inventory and fulfill orders may be limited. Dark stores allow retailers to optimize their logistics operations and improve the efficiency of product delivery to customers.
A key feature of dark stores is that they are designed and equipped specifically to fulfill online orders. This means they have efficient inventory storage and retrieval systems, dedicated areas for packaging and order preparation, and often feature advanced technology, such as automated warehouse management systems.
An example of a dark store might be a supermarket chain converting one of its existing locations into an online order fulfillment center. Instead of allowing customers to purchase products in the store, the establishment is used exclusively to receive, store, and prepare online orders for delivery or store pickup.
Dark stores are an innovative response to the growth of e-commerce, allowing retailers to efficiently and profitably meet online demand. As online shopping continues to gain popularity, dark stores are likely to play an increasingly important role in the retail landscape.
The Sales Glossary is a compendium of all the most commonly used terminology in sales strategy. Many of the concepts listed here are used when implementing a CRM system or a digital sales funnel, no matter if they are legacy systems or an online CRM. See also our blog that deals with sales techniques, marketing and sales culture.