Bricks And Mortar: E-Commerce Analysis

E-commerce Effect on Traditional Bricks and Mortar

Examining the online effect of retail shopping, it is highly relevant to look at the impact the trend and how it is changing traditional bricks and mortar establishments. Currently, most retail business is experiencing a rapid decline in retail sales as the consumer is choosing alternatives online. Millennials lack the drive to shop in retail establishments contrary to generations before them. This generation values their time differently and views in-person shopping as a substantial sacrifice and would prefer to spend their time with friends or having adventures. Important to ask the question, “What does the future appear like for bricks and mortar and how can they ride out the storm?”

Looking toward the future, they are seeking a solution to keep them in the retail game and not lose out to the online environment. Investopedia states that bricks and mortar businesses can find difficulty in competing with online businesses as they have lower operating costs and increased flexibility. At this point, management questions the best approach to survive the trend. Boitnott (2017) poses the question, are bricks and mortar facing a risk by not having an online presence? Hudson (2016) also asks if people prefer stores, then why are stores in trouble and can bricks and mortar

Currently, Macy’s saw its sales peak in 2015 and has been facing a downward trend since that time. La Monica (2016) tells of same-store sales falling for five consecutive quarters. International sales at the flagship stores in New York and San Francisco are off as international consumers are spending elsewhere. Embracing the online trend, Singh (2012) states that Macy’s internet sales increased 40% in the fourth quarter. Federman (2016) tells how Macy’s and technology fit well together as Macy’s is reinventing itself in its bricks and mortar locations, in an effort to enhance the traditional retail experience through exploring retail innovation and