We are living in the middle of a digital revolution, and there is no doubt that this brings many changes into play one sector that is being heavily impacted by the surge of e-commerce is traditional retail. The pandemic forced many small retailers to close their doors for the final time, with many switching to online solutions to stay in business. This could be the end of traditional retail shopping.
Booming e-commerce industry
This is the main reason that bricks-and-mortar retailers are seeing sales fall and when you look at it from the consumer’s perspective, online shopping is a very attractive alternative to visiting your local mall. You might be one of the many thousands who found out how to start selling on Amazon and with some market research and a web designer, you can pretty much set up a shopping cart website.
Change of lifestyle
The digital revolution is changing our lifestyle and when you look at the many benefits online shopping offers, it’s easy to understand the appeal. No need to leave your home and with Google, you can easily find exactly what you’re looking for.0
Many people used to spend the day at their local shopping mall and while people still do, the numbers are much lower. If you are the kind of person who constantly worries about money, we have great articles to help with that!
Surviving sectors
There are several retailers that are still managing to hold their heads above water, which include the following:
- Food & beverage – Coffee shops, bakeries, and fast-food outlets.
- Pharmacy & healthcare
- Real estate agencies
- Restaurants & Hospitality
- Bars and clubs
- Niche stores
It is difficult to find a traditional store that sells electrical appliances, as the retailer cannot compete with the online supplier regarding price.
Booming logistics industry
E-store owners typically use 3rd party logistics companies that pick, pack, and deliver; state-of-the-art warehouses that are fully equipped to process high volumes of orders along with an international network of carriers to ensure rapid delivery.
The 3PL sector is one of the fastest-growing, as more and more shoppers discover the benefits of e-commerce and the number of shopping cart platforms is rising fast, as young entrepreneurs jump on the bandwagon.
Antiques & jewellery
Both these sectors are unaffected by the online shopping boom; indeed, they would have a strong online presence, but due to the nature of the business, people want to physically inspect the goods before buying. Next time you are in the city, take note of the type of retail stores to get a better idea of what is impacted by e-commerce.
The rise of Amazon
One of the largest corporations, Amazon has a fully automated picking, packing, and delivery system, which is why they can retail at such low prices. The consumer will always be price-focused and Amazon can usually undercut other providers, which makes them tough to beat.
The world is in a constant state of change and where will it end? No one knows!
