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Livelong Digital
6 Jackaroo Street, Melbourne, VIC 3754
0458 046 739
On The Future Of
Brick-And-Mortar
Shopping](https://image.slidesharecdn.com/onthefutureofbrick-and-mortarshopping-170109030408/85/On-The-Future-Of-Brick-And-Mortar-Shopping-1-320.jpg?cb=1483931419)
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On The Future Of Brick-And-Mortar Shopping
- 1. fd [INSERT IMAGE HERE][INSERT IMAGE HERE] Livelong Digital 6 Jackaroo Street, Melbourne, VIC 3754 0458 046 739 On The Future Of Brick-And-Mortar Shopping
- 2. Online shopping is experiencing a massive boom. One survey by UPS suggests that out of more than 5,000 shoppers surveyed online, over half (51 percent) said that they made their purchases online. It’s also worth noting that 44 percent of smartphone users bought merchandise online according to data presented by the Wall Street Journal. These numbers make people wonder whether online retail outlets will eventually replace brick-and-mortar shops. Is this likely? The Real Story According to Forbes contributor Tim Worstall, there will not be a takeover. Worstall notes how retail spending is improving (albeit bit-by-bit when compared to online shopping), and how it’s driving online shopping as well. Experts point out that online shopping only has a small impact on sales in physical shopping outlets. Barely 10 percent of retail sales are online. In the United States (US), about 80 percent of roughly 1,200 shopping centres report good business health. Vacancy rates aren’t even in double digit percentages. There is, however, a significant decline from 2006 when 96 percent of American malls were ‘healthy’, according to data from property firm CoStar Group.
- 3. Pessimism Still Exists Online shopping is easier. People no longer have to drive to the store, choose and pack their purchases and transport them home. One of the countries with the highest rate of online shopping is the United Kingdom (UK). Data from UK-based retailer Shop Direct shows that over 4 out of 5 Brits (roughly 95%) buy their goods online. Revenue from online sales hit numbers close to £100 billion in 2013 alone. It’s these numbers that fuel scepticism about the health of the retail outlets amongst some analysts. Forrester Research estimates that online shopping will continue to grow by increments of 9.1 percent until 2019. As a result, more physical shops (mainly in shopping centres) are likely to close. For example, although most shopping centres in the US are healthy, there is still an undeniable decline. Retail analyst Jan Kniffen, speaking to CNBC, predicts that one-third of shopping centres in the US will shut down. Such predictions come in the wake of major closures, such as the outlets that have been shut down by Macy’s. There is no way to accurately predict the future of shopping centres. But the rate at which online shopping is growing is fuelling negative speculation about the future of our shops.