Are the Days of Brick-and-Mortar Stores Over? The Answer May Surprise You
When the powerhouse online retailer Amazon made its debut, it didn’t take long for other stores to follow suit. Walmart, Target and other large retail chains have items for sale online. There were doom and gloom predictions for brick-and-mortar stores whose days were numbered. One such prediction was that 2017 would be the year of the “retail apocalypse.”
In 2019, not only are retail stores still in business, but they’re experiencing a comeback. In fact, even online giant Amazon is now turning to the physical shopping experience with actual brick-and-mortar stores.
A Brief History of Online Retail
It seems impossible that there was a time when people were unfamiliar with Amazon, but near the end of 1994, an article ran in Money magazine examining the trend in consumers shopping from home, which included ordering through TV shopping channels and catalogs. That year, online shopping service started appearing on the radar, even though it wasn’t fully accepted yet. Of the $60 billion worth of purchases from home, almost all was attributed to catalogs or shopping networks, according to an article from Money magazine.
It wasn’t until 2000 that the Census Bureau began tracking online sales. The result? In the fourth quarter of 1999, online sales alone hit a whopping $5.3 billion.
Fast forward to today, where almost two-thirds of Americans buy something on Amazon—and 40 percent of those say they buy from Amazon at least once a month, according to an NPR article.
Statistics like these made many business leaders think that the days of brick-and-mortar stores were numbered.
Brick-and-Mortar Stores Are Making a Comeback
When examining the shopping habits of Millennials and GenZers the retail stores are proving more popular, according to information from Forbes magazine.
So why are these making a comeback? Here are four reasons:
- Retailers understand that the future is a combination of both online and in-person experiences. The most profitable stores marry the best of both worlds, according to information from Forbes magazine.
- Consumers are all about a shopping experience, and desire the more personalized attention a brick-and-mortar store offers. A part of this experience is being able to touch or try on the merchandise.
- Some online retailers offer free or dramatically reduced shipping, which takes a toll on profits. Brick-and-mortar stores can dramatically reduce the expenses by eliminating the need for delivery.
- The upcoming generations—Millennials and GenZ—have huge purchasing power and prefer physical stores, although they will do product research online.
The Bottom Line? A Custom Retail Display Is More Important Than Ever
With brick-and-mortar stores making a comeback, you have a great opportunity to capture revenue and develop loyal customers. This often starts with a clear, custom retail display that showcases your brand, your product and your company philosophy.
Want to learn more about the benefits of a great POP display? Check out our previous articles and then give us a call so we can make your vision a reality.
Focusing on the Future: 7 POP Trend Predictions for 2019
Implementing Digital Marketing Strategies Into Your Retail Display
Five Ways to Measure the ROI on Your POP Displays
Think Like Your Customer: The Psychology Behind Today’s Consumer
Since 1977, McIntyre Manufacturing Group has created custom-designed displays with an uncompromised dedication to customer service. We utilize the latest technology and attention to detail to create the finest products with excellent craftsmanship. If you can dream it, we can create it. Contact us to see how we can bring your vision to life.
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Source:
Forbes magazine. “How Brick-and-Mortar Stores Are Making a Comeback.” Online.
Forbes magazine. “Five Reasons Why Amazon Is Moving Into Bricks-And-Mortar Retail.” Online.
Money magazine. “8 Amazing Things People Said When Online Shopping Was Born 20 Years Ago”
http://money.com/money/3108995/online-shopping-history-anniversary/
National Public Radio. “What Americans Told Us About Online Shopping Says A Lot About Amazon. “Online.
