Recently some of the largest retail chains In the United States announced that they would be closing many of their stores across the country, and hundreds of employees will be losing their jobs. The downsizing was blamed on competition from large online shopping Corporations like Amazon. I am wondering if this is just a temporary situation or it will further escalate into a greater fallout in online shopping.
Online shopping is already flexing its muscles and slowly inching its way to the hearts of the shoppers. There are no statistics yet but from my own estimates, I guess online stores have 10% of the sales, leaving in-line stores with only 90% of the clientelle. And as days pass, many are joining the online shoppers so in a year or 2 maybe the online stores will get more than 20% percent share of the sales.
I dread the day when most shopping will be done online as I really like to go into stores and look or feel for the stuff I want to buy. It seems that I'm in the minority according to the trends, but seeing something online sometimes does not really translate too well in real life. I know of some people who bought clothes online and they really did not match up to what the pictures promised.
Oh I can see it happening already, with a lot of high street stores taking to the 'net to keep abreast of new developments and no doubt save money on overheads. But I doubt very much the high street will ever disappear altogether. I think what a lot of businesses will do is corner both markets by maintaining their high street presence as well as selling online. Even as a huge fan online shopping, there are still times when I'd much rather go to a regular store.
Many stores cannot afford to stay open as it's not economically viable. It's happening all over the world, but the small towns will struggle to keep their stores open and competitive. In rural areas it may not be the case, and large companies may choose retail parks to have a store and warehouse in one as it's cheaper. Online is cheaper, and it's about making profits.
It's a serious threat now! There are plenty of stores that just can't get the business because it's too easy for people to shop online rather than having to go anywhere and get a physical item themselves. I think that is the problem for a lot of small businesses, because people want online shopping and delivery these days, but the smaller shops are just not able to provide this unfortunately. I hope that things will get better, but online shopping is definitely having an effect already.
I think there will always be a place for physical shops but it will take a lot to balance it all out and see which ones will be left. Eventually I think the shops that will close down will be the ones that don't supplement their sales with online services. Nowadays even physical shops need to have an online presence further than just showcasing products but actually selling them as well. There are products that will probably always benefit from having a boutique where people can test the products.
I think online businesses have been flourishing through the years and physical stores are being affected greatly. The ease of access that online stores provide is one factor that makes online selling very popular. A person can shop anytime in the convenience of his/her home when shopping online. I personally still prefer physical stores most of the time though because I enjoy walking around searching for a good find in malls and shopping centers.
I expect that many stores will have online outlets so you can buy whatever you need from home any time you want to but their stores still will be around and serve as "ware-houses" and also cater to the few people who still prefer to buy their stuff from a brick and mortar store. Either way it's the shoppers who'll profit from this because they can get great deals any time.
I agree with you. Can you imagine a state where everyone is in their homes online shopping, streets are bare except for those going to and from work or school or enjoying activities outdoors sharing their spoils of online shopping? And a lot of businesses are cornering both markets it just make sense as you said because of where technology has ventured in the business sector and still make a profit. Good post @Lushlala
I cannot say that I am shocked that this is happening. In fact, I had been anticipating the beginning of this sort of thing happening quite a while ago, so I am surprised that business are not further into this issue. The ability to complete with the convenience of online retailers like Amazon just isn't there, unless you are also a popular online business that also has offline stores.
It's already a serious threat. Those who can't keep up with the times, are already falling behind or closing down altogether. In the future, those who still stand, will be combining tech with the in-store experience. Not just an online shop, but a wholey customizable experience when you walk in their doors. If people can't give the utmost convenience for the very laziest (not saying online shoppers are lazy, I'm saying we have to cater to the entire spectrum, right down to the laziest lol) then giving up now might be an idea.
Yes online shopping is a serious threat to conventional shopping because it's simply more convenient and at times cheaper too. I think if the physical stores want to keep up with their sales and retain their customers, then they should also have an online counterpart of their stores.
Just like @Flowerpower, I also prefer shopping in physical stores. I prefer seeing the items personally and fitting them to see if they look good on me. This is something online stores cannot have, the opportunity to try things and see for yourself if it looks good on you. I imagine that if online stores can have this feature, maybe if you can upload your own statistics in the site and have a "mannequin" where you can see if it fits you, then I might go for online stores as well. For now, physical retail stores win this round for me. With regards to other items, I don't mind buying them online. The good thing about online shopping is that the possibilities of buying are endless. You can buy items that aren't even available in your country. You can get coupons and discounts and use them without shame because you're anonymous anyway. The downside? Well, you cannot see the product in person for any flaws or problems. But most stores have good return policies anyway. I don't know if online shopping will ever replace shopping in physical stores. I would like to see them progress, both of them. After all, lots of people rely on physical stores as even employment opportunities. And we can say the same for online stores.
Spot on ms plantivore My buddy works at best buy and he has said the number of people he can tell are just NOT going to buy in store is something like 1 in 3 or more at times. It's well known among the associates that anybody could be on the chopping block next, they just cut a bunch of jobs, etc
It is definitely a serious threat already, look what happened to Borders! I have done a lot of shopping online in the past few years and the convenience and cost savings can be tremendous. There are some things I'll always buy in person, but I love to be able to shop online especially for certain things like cat litter, where I already know how the product performs, and I can get someone else to carry it to my front door!
Absolutely. There's a thing called showrooming where the buyer checks out items in the store with the intention of buying them online. They physically touch the items in store and then buy them online on Amazon. The only stores that don't really get hurt by this practice are places like Walmart that have both an online and offline component.
Yes indeed, the local grocery store and shopping malls are in trouble. When there was a forecast for a big winter storm in our area the stores were staying don't come to us just order online and we will deliver your food or what ever it is you need, stay home, stay safe and warm. I don't see as many people in the stores as I use to, you may see people out but they are not shopping, just out of the house.
I see a possibility of online shopping growing even bigger and in-store shopping getting smaller. Thus, online shopping will become a threat to in-store shopping in some way. Having said that I see a chance of in-store beginning to sell their products online and continue with their business.
That's sad when businesses close up and lots are let go. I went through that working for J. C. Penneys and did not get a job after that too. Though Lowels, Walmart and Walgreens opened up locally there were always so much applicants to compete with. Sears also sized down locally and got only 2 stores on Oahu instead of the 3 it always had. Though some are closing down others are opening up like the new amazon brick and mortar store on the mainland so it kind of balances out a bit for the younger ones. Let's hope for a brighter future economically.
