Some people in the retail world are wondering if physical stores are still relevant. Even though online sales have increased, many companies are continuing to open brick-and-mortar locations.
Here’s why physical retail may not be dead just yet:
Many consumers want to talk with an expert before making a purchase. For example, they may need help picking out a product that suits their taste or choosing between different sizes and colors of an item. Retailers also offer expert advice on how to best use products or direct customers toward complementary products when one is being purchased. This type of assistance requires face-to-face interaction.
Another reason for opening up physical locations is having access to salespeople. While an online store can show images, videos or written descriptions of products, having a salesperson in-store allows for hands-on interaction. This process can be impactful when purchasing items like clothing, electronics or even furniture as per RemoteDBA.com.
Customers are looking for more than just low prices when they shop. They want good customer service that satisfies their needs and makes them feel comfortable during transactions. When customers have questions about products, it’s easier to return merchandise purchased online if they need further assistance at a local store location.
While traditional media such as TV and radio do drive purchases, research shows that more people search out specific products on their own before committing to buying one (such as by searching Google or checking out Amazon). Customers want to go into a physical store, see and touch the item they intend to purchase before making the final decision.
Data shows that many people like shopping in person because it’s more convenient than other options. They can pick up items bought online immediately or return unwanted items without waiting for delivery services (and subsequently spending money on shipping costs).
While online sales are growing, brick-and-mortar retail stores may not be dead just yet. Although eCommerce is increasing, these reasons explain why brick-and-mortar retail locations are still valuable today.
For the majority of people, shopping is one of their most important daily activities. If you cannot shop for even a day, it can leave you feeling depressed and anxious. Shopping distributes goods and creates jobs, boosts economic productivity, humanizes retail space, saves money for consumers, and strengthens community cohesion. The future will be no different; in fact, the role that shopping plays in our lives will continue to grow with technological advances allowing more convenient services such as E-commerce.
However, despite all these advantages, there are still downsides to brick and mortar stores, such as environmental impact and high real estate costs, forcing many retailers to embrace online platforms such as Amazon and eBay. However, several studies have shown that E-commerce has both negative and positive effects on the global economy, which may lead to financial problems in the future. These studies have concluded that E-commerce makes retail markets more competitive and creates monopolies in specific needs such as books and toys.
E-commerce affects retailers and brick and mortar stores as well when it comes to labor issues because brick and mortar stores have been forced to adjust their business models to compete with the convenience of online platforms such as offering same-day delivery or utilizing mobile devices to check inventory. For example, Macy’s uses a mobile system created by Shopkick, which allows employees doing restocks to do so while interacting with customers who can use the app to check product information and discounts.
Is E-commerce Beneficial?
E-commerce is not always beneficial. However, some studies show that E-commerce has increased traffic congestion in surrounding metropolitan areas and is responsible for a large portion of carbon pollution because of shipping. There have also been cases where consumer data was stolen, resulting in financial problems such as the Home Depot hack in which 56 million credit cards were compromised, leading to almost $60 Million in total damages.
Despite all the benefits and downfalls, one thing remains certain: shopping will continue playing an essential role in our lives, and technology will continue to advance, making it easier than ever before whether we buy products online or from brick and mortar stores.
For most people, shopping is one of their most important daily activities. Shopping not only distributes goods but also creates jobs, boosts economic productivity, humanizes retail space, saves money for consumers, and strengthens community cohesion.
E-commerce makes retail markets more competitive
It doesn’t work because if something causes an industry more competitive, it implies that other industries aren’t as competitive. You could say competition is increased or intensified to fix this problem.
However, several studies have shown that E-commerce has both positive and negative effects on the global economy, which may lead to future financial problems.
To compete with E-commerce, brick and mortar stores have been forced to adjust their business models. For example, Macy’s is using a mobile system created by Shopkick, which allows employees checking inventory to do so while interacting with customers.