The closure of a couple of big retail chains expanded across the country doesn’t necessarily mean the death of the entire brick-and-mortar retail industry. It would be premature to build up this idea based on a few reported cases of bankruptcy. One cannot follow the crowd and come up with a bold stance inspired by some industry veterans who believe” it’s the end of brick and mortar retail stores.” Instead, you need to make a realistic analysis of the industry in the light of real facts.
What Do Stats Reveal About the Fate of Brick and Mortar Retail?
Ever-increasing online stores and e-commerce platforms with sales of billions of dollars each year can give us an illusion that brick-and-mortar retail is dying, but believe me, they can never die as long as humans are alive. Online retail stores may have aggregated global sales of billions of dollars. Still, they can never match a multi-trillion-dollar brick-and-mortar retail industry, no matter what one may argue! From roadside small retail shops to big branded shops in malls and retail hubs, there are millions of brick-and-mortar retail stores all over the world that are present on the face of the Earth, and they bear testimony to the fact that physical retail is not dying!
Brick and Mortar Retail is in The Safe Zone!
According to a study, 84% of the products or commodities manufactured worldwide are sold in brick-and-mortar retail stores. This indicates that online stores or e-commerce have been able to grab a small percentage of the total market share, and brick-and-mortar stores are still in a safe zone where they can reacquire what they have lost over the years.
That is going to be a challenge for the entire brick-and-mortar retail industry, and veterans believe it might be impossible to regain the loss. Research that was conducted by a group of students concluded that you could prevent losing your brick-and-mortar market share to online competitors by making serious efforts to improve your in-house shopping experience. Getting your customers involved and navigating them to what they want surely ensures more sales and, hence, profitability.
Why the Retail Industry Experienced A Dramatic Shift?
With rising shoppers’ expectations, increased competitive pressures, the proliferation of data, and evolving touchpoints, retailers need to come up with something new and must focus on delivering and elevating the overall customer experience if they expect to succeed in today’s highly competitive market. The reason why online stores have been able to grab a significant market share is due to evolving retail dynamics and changing industry patterns and preferences. Customers capitalized on easy-buying options at competitive rates and found convenience in purchasing their desired products online from their mobile devices. A significant shift from brick-and-mortar retail buying to online buying has shaken the industry to its core and made people believe that brick-and-mortar retail is dying. However, this wasn’t so!
What’s More?
Online retail giants such as Amazon, eBay, and Walmart, which have operations all across the globe, made it convenient for people to buy products at the hour of their choosing at discounted rates cheaper than the products offered in brick-and-mortar retail stores. This significant gap made people think that online stores are cost-effective, and brick-and-mortar stores are exploiting them by charging more for the same products offered for sale in online stores. Online stores have some limitations, such as loss of sensitive data, vendor details, and threats to cybersecurity, which limits the trust of some customers and drives them to brick-and-mortar stores despite online discounts.
A Well-Crafted-Illusion of Brick-and-Mortar Retail Dying
So, it makes me feel safe to say that online retailers or marketers have been quite successful in establishing an illusion that brick-and-mortar retail stores are dying. Well, the concept is mostly exaggerated, and physical retail is not dying, no matter what. However, brick-and-mortar retail may witness a slight breakdown in market share in the upcoming years due to changing market dynamics and customer preferences, but it won’t completely die! If you don’t trust me, just trust the stats!
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.
