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BizReport : Ecommerce : June 06, 2017


Most retailers believe it likely their physical stores will shut within 10 years

Two out of three business owners currently running both an online and physical store believe their physical store will cease to operate sometime within the next decade.

by Helen Leggatt

Amidst some of the biggest U.S. brands shutting up stores across the U.S., approximately 3,500 retail stores so far during 2017, new research from GetApp Lab, a retail business and marketing analytics company, furthers the possibility of a 'retail apocalypse'.

When asked, "How likely is it that your business will be fully conducted online within the next 10 years (i.e. you will no longer operate a physical store)?", 66.1% said "likely" or "extremely likely". Just 4.4% said it was "extremely unlikely".

Retail_Apocalypse_Venngage.png

At the recent Berkshire Hathaway annual meeting, Warren Buffett acknowledged the shifting retail landscape saying "the department store is online now" and that retailers faced a challenge to adjust to the growing influence of ecommerce.

The effect of ecommerce on physical stores is also being felt across the pond in the UK.

Earlier this year, a report from ParcelHero titled '2030: The Death of the High Street", forecast that, by 2030, ecommerce will have forever changed the UK's town centers, with many familiar stores vanishing as ecommerce takes over.

According to the report, there were nearly 600,000 stores in the UK in 1950, dropping to under 400,000 by 1971 when supermarkets arrived on the scene. By 2012, there were just 290,000 shops left and, by 2030, it is forecast that just 120,000 will survive the ecommerce onslaught.

Tags: ecommerce, research, retail










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