Brick And Mortar Is Dead, Long Live Brick And Mortar

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From Seeking Alpha:

The brick and mortar retail space has seen major devastation over the past several years. The writing has been on the charts for a long time; however, many refused to see it. Or rather, refused to interpret what it means.

. . . .

[S]ome of the most iconic retail brands over the past 12 months have performed horribly. Macy’s and Sears  have lost about 36%, Stage  has lost about 75%, but at the same time, Amazon has returned about 46%.

As we all know, there are many reasons for this, among other:

  • People are shopping more and more online.
  • Specialty stores are taking more market share.
  • The plethora of variety in online stores cannot be matched by traditional retailers.

. . . .

You can make all consumers shop online some of the time, and some consumers shop online all the time, but you cannot make all consumers shop online all the time.

. . . .

According to data from the Federal Reserve (seasonally adjusted), only about 8.5% of retail sales are done online. And if you look at the chart closely, online sales seem to be flattening lately. Is it possible that we have reached peak online sales?

I doubt it; however, I am sure of one thing. At some point, we will reach a point where online sales will peak. I have no idea at what percentage of sales that will happen, but at some point, it will happen.

There are many reasons for this. You cannot buy furniture online. You actually have to feel it, see it up close and sit in it. Yes, you can buy some apparel online, but only if you are sure the size will fit you.

. . . .

The NYT reported that [Amazon] is also thinking of opening furniture stores, home appliances, electronics and more.

Link to the rest at Seeking Alpha

12 thoughts on “Brick And Mortar Is Dead, Long Live Brick And Mortar”

  1. I’ve bought furniture online (ex. the desk I’m sitting at right now, my bed, etc).

    Related: I saw a FB post by someone yesterday “seeing the light” about not shopping online so much in favor of supporting local businesses in Amarillo.

    I’m all for supporting local businesses, and it’s easier to do in larger cities because prices are often lower than they are in small towns.

    But small town business owners need to offer quality products at reasonable prices if they want my business.

    Looking at you, local hardware stores!

    • Or offer quality products, good price, great customer service, and DELIVER FAST. I’m all about having it brought to me. Bring it to me–food, clothes, etc–at a good price and I’ll buy from you.

      • And have them in stock.

        My biggest problem with buying locally is that I look at the company’s online catalogue, find something I like, and then there’s none in stock in the city (or, worse, the product is ‘online only’). There’s not much point buying from a local store if it takes longer than buying online.

        • That happened to me, but in the most annoying way: The online info said the store nearest me had 2 in stock (a particular TV). I show up less than one hour from when I checked online and they have NONE in stock. NONE. So the online info was not correct and they wasted my time. I have not returned to Target since.

  2. I do 90% of my retail buying online. Shoot, I’ve even used grocery delivery 5x this year (I was lethargic from anemia, so hello, Instacart.) At a family party this weekend, I was asked by a couple folks where I got my cute new wedge shoes. Amazon. Oh, also these leggings, and this tunic, and the underwear I’m wearing. Amazon. My pale blue leather purse I did get hugely discounted at TJ Maxx 7 years ago. 😀

    My dishes, chromebook, laptop, coffeemaker, the rug in my living room, my hair products and makeup, my supercomfy mattress, my leather Bibles, my gluten-free non-perishable foods, green tea–online. My various medications: doc orders, I track online, I get via USPS.

    I’m very happy if I never have to drive to the mall.

  3. I just bought an Aeron chair online after trying one at a friends house. We also have purchased my desk, our bed, bedside tables, dresser, living room chair, most of our rugs,patio furniture, and most of our lamps and small appliances online.

    I would also guess that 80% of our clothing was purchased online. Clothes are easy to return now as most stores including Amazon have free returns on clothing. I even buy shoes online knowing I can send them back if they do not fit.

    We live in a small town, and while we do shop at local furniture and clothing stores, the selection is limited. When we cannot find what we are looking for, we head to Amazon, Pottery Barn, LL Bean or the like. And for a lot of basic items, we head online first.

    I guess the author of this piece does not get out on the internet much.

    • I really hate trying clothes on in stores. Small, hot rooms. Who knows if some perve is watching (we read those news stories of creeps doing that). I much prefer ordering and trying on at home. If it fits, yay. If not, free Amazon return. I don’t buy unless I have free return. Usually, once you know the brands and styles you like and the sizes you are in those brands, it’s a snap.

  4. I just went to the original article and they have removed the bit about how you cannot buy furniture and clothes online. Somebody must have realized how foolish that sounded.

    And now it just says, “And if you want to know why you cannot make all consumers shop online all of the time, the chart below explains why.” This is followed by a chart showing ever increasing online sales. That makes no sense.

    • Well, the premise itself makes no sense.

      Ikea does fine selling furniture online. So do office supply and B2B websites.
      Sears was selling furniture and clothing “online” for decades. (That was the whole purpose behind standard clothing sizes.)

      B&M will endure but the stores that endure will be the ones that hinge on the primary strength of storefronts: immediacy. Everything else is at risk.

  5. I’ve ordered furniture and clothes online for ages. Also rugs. With big items, it’s nice to have them delivered to the house rather than having to haul it home. There’s a limit to what will fit in my car.

    I’ve wondered if Wayfair is cutting into Amazon’s business. They advertise a lot — and my few experiences with them were good ones.

    • Having furniture, mattresses, and heavy cases of green tea or coconut water brought to my door: worth paying more. But I end up paying less. 😀

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