E-commerce has slowly taken over a major chunk of the consumer population and time. In the US, online shopping has about 6% of the retail industry growth whereas in UK it has reached an alarming 39% of the market. The upsurge in online shopping has been worrying the traditional brick and mortal shops and malls for quite a long time and for good reason too.
- Loss of money: Malls get rated based on how well they maintain their space, location and customer ratings by property consultants. Malls that tend to do good needs lots of effort on the part of business owners and landlords to keep the property in good conditions. When these shops lose money because a majority of their clientele have moved online, it becomes much difficult to sustain with the high rent prices that the shops have to pay. Which means many businesses end up suffering unprecedented losses and vacate.
- Different industries are impacted differently: As much as the physical stores for electronics, apparel, music, books and other goods have taken a hit, surveys shows that online shopping have had little to no effect on liquor, gardening, beverage, food and luxury fashion brands. They have been and still are strong performers in traditional sales networks.
- Quality of service: Buyers are increasingly relying on reviews from their peers on shopping sites for buying what they need. Which is something retail shops cannot compete against. Buyers are less likely to trust salespeople in a mall shopping store than their peers. Which means a majority of research is done online like reviews of Primitive Outpost high quality beard oil. It is more likely to generate an online sell. Which gets delivered at your doorstep with a just a click.