Do We Need to Worry About the Demise of the Brick and Mortar Store?


With many forms of shopping being done completely online, does this mean the end of people physically going to retail stores for what they need and want?

The answer is no, and if you are surprised, I understand!

tumblr_mnzk9yKkGl1suahaao1_500

There is no doubt that e-commerce and our mobile-savvy world is turning retail into a digital marketplace where the possibilities are endless.  After reading, “E-Commerce Is Not Eating Retail” by Darrell Rigby, I learned many facts that had me saying, “whew!.”  Being a designer of product displays, the fact that there are even talks about brick and mortar stores losing their appeal gives me the shakes.  Brick and mortar stores are the bread and butter of my industry!

Over the past 20 years, e-commerce sales have grown to 6% of total retail sales.  In the future, researchers predict a growth of 18% by 2030, with sales being higher in some categories such as music and lower in others, such as food.

E-Commerce

But according to Rigby, brick and mortar stores still control between 94% and 97% of total retail sales.  In addition, one must also remember that e-commerce and brick and mortar stores work simultaneously.  For example, if I were to go to Walmart for an iPad mini, and they were out of stock, I might go onto my smart phone and order it off their online store and get it next day.  This is where the wires cross.

6a010535f04dfe970b0163056c440c970d

Rigby also mentions a great point about strictly e-commerce stores; the information technology, distribution centers, shipping, and returns processing by these companies can actually cost as much as running physical stores.

So, it’s safe to say people still do enjoy the process of perusing through the aisles for the products they are looking for.  People also love to snag a great deal while out shopping.

This means the demand for eye-catching product displays are still high, and we here at Sharn are happy to hear that.

For more information on our products and services, visit our website at http://www.sharndisplays.com

Also, follow us on Facebook & Twitter!

Facebook-Vector-Iconhttp://www.facebook.com/sharnenterprises

new_twitter_bird_vector_by_eagl0r-d2yth6g@SharnDisplays

SharnLogoAddress2010

Source: http://blogs.hbr.org/2014/08/e-commerce-is-not-eating-retail/

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s