The ceiling of online retail

The fears of big-box retailers and smaller brick-and-mortar shops phasing out may be overrated.

Its true that many retailers are struggling under the onslaught of the glut of options provided by eCommerce. But this struggle seems only to be a growing pain of business: finding the new market demand and adapting a business to it. According to consumer psychologist Kit Yarrow of Golden Gate University, business owners find that people “shop differently”. Real life salespersons can add a little pressure to a shopper that will often end with a purchase; in-store help such as real-time questions and handing of a product can provide better answers for the consumer.
Ikea, the nation’s largest big-box retailer is banking on this. They are expanding with new developments in Las Vegas, Memphis and Columbus. That decision is firmly based upon in-store sales up 7 percent year-over-year. However, not to be outpaced by the eCommerce revolution, they are simultaneously investing in their online portals which have produced e-sales up 21 percent.

There is a ceiling that eCommerce cannot surpass that brick-and-mortar can: the ancient art of customer service. This variable cannot be replicated in the same way through eCommerce. People still want to interact with a real human being. They want to try on shoes before they buy them. They want to sit on a couch before signing on the dotted line. They want to try on the jacket, shirt or pants before swiping their bank card.

In the end brick-and-mortar is not going away. Retail is adapting the same way all markets are adapting to the revolution of the internet and all it provides: by evolving into a competing entity and focusing on areas wear they can provide what eCommerce cannot.

Try that on for size.

-Jason Rowlett