http://money.cnn.com/2017/04/22/news/credit-suisse-retail/index.html
Ever since the creation of Amazon and similar websites, brick-and-mortar retail stores have been closing at an all time high. According to Credit Suisse, it is possible that 8600 brick-and-mortar close can close this year, more than any year before. If this prediction does come true, America will lose more than 147 million square feet of retail space.
The internet has been the worst enemy to retail stores like Sears, Macy's, and J.C. Penny, with a trend towards online shopping making it quicker and easier to compare prices side by side and have more of a personalized shopping experience. In the future I wouldn't expect this trend to stop.
9 comments:
I am surprised the more are closing this year than any year before. I thought many of these changes from Amazon and other online businesses had already greatly shifted retail business. I wonder what is projected of Amazons growth over the next few years.
I agree with Sam in that it's surprising that this is happening this year rather than in previous years. I do know that a lot of these stores have tried (mostly in vain) to keep up with the new experience consumers are looking for (personalized, fast, easy). There are some higher-end retail giants like Nordstrom that seem to still be making profit, but it will be interesting to watch the gaps emerge in America's mall experience. I'm not sure we would ever see a shift to exclusively shopping online; consumers still find it important to try on clothes in real life, but the future is definitely cyber.
Considering the rapid growth that a company like Amazon has already had in recent years, I'm intrigued to see whether they will continually find ways to streamline and diversify the online shopping experience. My guess would be that they continue to find ways to adapt, however competition from various other stores that specialize exclusively in one of the many products Amazon offers presents an interesting challenge.
I think its important to note that as there is an increase in the closing of retail stores, it is also predicted that there will be a significant increase in shopping malls closing down too due to lack of foot traffic. The malls tend to lose the income and shopper traffic generated from retails store's businesses. It’s the age of the online shopping and brick-and-mortar retailers cannot compete. The dominance and popularity of these mega online outlets is based on lower prices, a wide range of options and the convenience factor. Retail investors are losing confidence in retail companies relevance. Their ability to compete in an unpredictable and competitive retail environment is questioned both by investors and analysts. I agree with our future especially with globalization taking over is definitely cyber. More and more online companies are providing the option to ship their products out of the United States which makes it more convenient to have online shops as they are accessible across the globe.
Unfortunately, these trends do not surprise me. WIth technological advancements making it easier than ever to shop online, brick and mortar stores just can't keep up. There's virtually endless possibilities online and home delivery is about as easy as shopping gets. Traditional stores just can't transition to online fast enough.
i though that this was a interesting article to read because we all have shifted from shopping in store to doing most of it online. for example this Black Friday i didn't go out to shop because most of the companies offer there sales online so customers don't have deal with the lines. the only way that some of these companies that are strictly brick and mortar stores will be able to stay afloat is if they start to transition into the online sales.
I am curious how this may influence new businesses joining the market. I think retail involving brick and mortar can be very costly for different companies to sell products because of the large reduction in their profits shared with the retailer. A larger online presence allows some of these smaller companies to afford selling their products without the huge costs of having a brick and mortar place.
I read an article about the “Store of the Future” event at London’s Design Museum, the luxury e-commerce platform Farfetch showed off connected clothing racks, touch-screen-enhanced mirrors and sign-in stations that could help put data collected from customers online to use in stores, as well as harvesting material gathered during store visits to ease later orders on the web. This example shows a mix of technology and physical stores can perhaps coexist with each other and still be attractive to consumers.
The survey on the new study of the Pew Research Center suggested that Americans aren't simply abandoning traditional in-store locations. Sixty-five percent of online shoppers indicated they generally prefer buying from physical outlets if given the choice. Price is often a far more important consideration than whether their purchases happen online or in physical stores. But I do agree with the previous comments on this post -- cyber is the future, there is no doubt.
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