Running a physical store involves significant overhead costs, such as rent, utilities, and maintenance. You also need to invest in a sales team and possibly security measures. The geographical limitation is another downside; your customer base is restricted to those who can visit the store, which can limit your market potential.
Additionally, physical stores are more susceptible to external factors like weather, pandemics, and local economic conditions. A downturn in any of these areas can severely impact foot traffic and sales.