Imagine that one night after a hard day's work, you slept for a while, but at last you pulled a wrinkled stilt and slept for years. When you finally wake up, it's 2025 and you're just in time for your vacation. You rush out of the house and frantically look for places to shop, but you don't. You can't find a retail store in supermarkets, gas stations, restaurants, car dealers and other businesses you're used to seeing. (Find out the best strategy for using mobile payments and remittances to anticipate growth. Please refer to the mobile payment that is expected to be paid to Skyrocket.)
Then memories come back to me. You remember that in the summer of 2011, when you began to take a long nap, online shopping began to cause considerable damage to traditional bookstores and movie rental places. More and more people buy books and movies online. Now, nearly 15 years later, almost all types of entity retail enterprises are extinct.
This may be an exaggeration of the future. But unless you sleep like a gnome, you know how the Internet is beginning to change the retail business. The following is the status quo of four physical retail chains, which have suffered financial losses due to the growth of online shopping, or have undergone tremendous changes in their business.
Borders is currently the second largest bookstore in the United States. Borders is the latest victim of online shopping. On July 18, the company announced that it would close its business, close hundreds of stores and lay off nearly 11,000 employees. Experts say the failure to compete with Amazon, an online bookstore, was the main reason Borders collapsed. Books-a-million, the third largest U.S. bookstore, is negotiating to buy a small number of border stores, so perhaps at least some of the laid-off people will be able to keep a million employees working.
Chapter 3: This large chain bookstore has not reported any serious financial problems, and this chain bookstore is essentially "Barnes & Noble Bookstore in Canada", but online shopping has indeed led to significant changes in its business model. The company has now done more work in online book sales and launched a variety of non-book products in physical stores. Although the number of seating areas has generally decreased, customers will still find Starbucks Cafe in most chapters. Shopping on a comfortable sofa has great benefits - and some unpleasant side effects. Online shopping: convenience, cheapness and some deception.)
Barnes & Noblelike Chapters, Barnes & Noble are trying to adapt to the fierce online competition from amazon.com and other websites. The company's biggest recent move is to introduce Nook, an Android-based e-bookstore, and plans to invest heavily in online retailing in the future. In the short run, Barnes & Noble's physical stores may remain fairly stable because they have a wide range of book choices and high-quality conveniences, such as Starbucks Cafe, comfortable reading areas and literary activities. However, with the intensification of online competition, only time can prove whether the company can survive on the book supermarket for a long time.
Blockbuster was once the undisputed king of the video rental industry, with more than 4,000 locations and about 60,000 employees, but it succumbed to competition from Netflix and other online DVD rental services. The company filed for bankruptcy nearly a year ago and was acquired by Dallas's Dish Network in April. By that time, nearly 1,000 large stores had been closed. Blockbuster is now trying to compete directly with Netflix through its full access service, which allows users to rent DVDs online.
Most importantly, these are just four examples of entity retail businesses, which have felt the impact of online shopping in varying degrees, from having to change their business practices to bankruptcy. Not surprisingly, competition in e-commerce will only increase. Over the past decade, online retail sales have increased by more than 20% annually, while overall retail sales have increased by only 2.9%. However, brick and concrete enterprises are unlikely to disappear completely. On the contrary, many experts believe that the development of retail industry has reached such a stage that retailers often own online stores and traditional stores, which complement each other. But at the same time, there may be more casualties, such as borders and large areas. (For more information, see what we can learn from technology leaders in 2011.)