Why the Growth of Online Shopping Will Not Lead to the Demise of Brick-and-Mortar Stores The number of online shoppers has steadily grown over the last two decades. In addition to saving time, online shopping is immensely convenient. Indeed, all a customer has to do is log on to website of their retailer of choice. The shopper simply has to select the items in which he or she is interested, make a payment, and complete their order. The items will be delivered without the shopper ever leaving the house, or even the bed. This leads some to question why shopping at brick and mortar stores is even necessary. Indeed, many ask why someone would go to a physical store to stand in lines, not to mention fighting traffic both on the way and back home. This process is seen as a wasting valuable time when a better way to shop is readily available thanks to the Internet and ecommerce apps? The above line of thought has led many to suggest that the death of brick and mortar retail is close at hand. However, those people would be wrong.

E-commerce and online shopping have most certainly impacted physical shopping. This is not something that can be debated. Indeed, there are some brick-and-mortar entities that are being pushed out of business. However, online shopping will not completely bring about the demise of the ‘few’ remaining physical stores. While massive retailers like Amazon have been influential in phasing out “main street” type establishments, that trend was already in motion before Amazon emerged as the powerhouse that it is now. Indeed, Wal-Mart and a few other brick-and-mortar stores were making great strides online before Amazon upset the proverbial apple cart. Further proof that brick-and-mortar stores is not going away comes from Amazon itself. Their acquisition of Whole Foods proves that even Amazon knows that the brick-and-mortar format is required or preferred in many situations. Amazon is certainly correct in this regard.

Despite the ease and convenience of online shopping, it is also true that consumers want personalized service in some shopping situations. This can come in the form of businesses that combine the online/real-world shopping paradigms. However, there are other situations where the brick-and-mortar format being the primary medium. Indeed, some shoppers, at least in some situations, like to touch, feel and/or try on a product. Given that, it makes sense that Amazon is creating a ground presence for situations where the online medium of shopping is not optimal or practical. The marketing and selling of perishable groceries is perhaps the best example of this. Prime Pantry, an Amazon product, is all well and good. However, keeping it local and personal is also important. Wal-Mart, of course, is doing much the same thing in reverse. Walmart had a heavy presence in the online world before Amazon rose to its current prominence. However, the aggressive entry of Amazon and other online retailers into the paradigm is causing Wal-Mart to become more aggressive in its online operations and expansion. This proves that Amazon and Walmart believe, and rightly so, that a combined online and brick-and-mortar presence is necessary to become or remain competitive in the long run.

Even with the staying power of brick-and-mortar stores, as noted above, there is a reason why online sales and browsing have an appeal. Indeed, online shopping benefits include greater choices for consumers and better competition. Consumers can browse multiple retailers and instantly check prices online. Smartphones and such can help, but doing this whilst...

Even so, there are apps that perform instant online price comparisons. This allows a consumer can easily do online and brick-and-mortar shopping simultaneously. Using technology to enhance the shopping experience means that more and more people will use whatever method is best for them, whether the goal is to save money or purchase the most unique item they can find in the market. Using that technology properly means doing so in physical locations, at times. In short, there is the reality that there must be an online experience, a brick-and-mortar experience and a blended expierence that is timely, seamless and well-crafted. This is just as true for Amazon as it is for Wal-Mart, or any other firms that are like one or both of them.
The lessons learned and applied by Amazon and Walmart, as noted above, are proven and supported in other ways. Just one of those other factors and facets to consider is the overall volume of sales that occur online versus what occurs in physical stores. This is the message extended and explained by Amy Gesenhues of Marketing Land. She notes that approximately 88% of all retail sales still occur in stores. The major retailers, from TJ Maxx to Target, are not only synchronizing, but also segregating, their online and in-person shopping experiences so that consumers have obvious incentives to use both. For example, people might find that the pants they want are only available in brick-and-mortar stores. In other cases, they could receive a discount for buying the same product online. Depending on supply and demand, the incentives will regularly change as retailers make decisions based on issues, such as warehousing capacity, market trends and consumer behavior. Further, the stores themselves cannot fit every possible product or variation of a product on their store shelves. However, if someone finds a great pair of pants in the store, they can buy more of the pants later online. They can also buy colors that they love but that are not sold on the shelves. Further, retailers can keep a product available online for those that want it if sales levels do not justify keeping it on the sales floor at the actual stores.

The reality is physical stores are not dying. However, they are most certainly transforming. Indeed, the stores that will continue to succeed and remain competitive are those that will combine the best of online shopping with the best of brick-and-mortar experiences. On the other hand, those that do not adapt to the change will die off—a classic example of evolution or survival of the fittest. This has been seen time and time again, even before Amazon became the juggernaut it is now. Montgomery Wards, Circuit City and Borders are just a few brand names that are gone. Other firms like Dillard’s and JC Penney are struggling mightily. Sears/K-Mart is near death. Other firms, however, are thriving. It all comes down to seizing on opportunity and knowing when to stake a new path. Perhaps the best example of a firm missing out on what could have been when it comes to the online/brick-and-mortar paradigm would be Blockbuster. That company had a chance to buy Netflix before that firm itself became a giant. Blockbuster said “no” and now they no longer exist. The Netflix story since then, of course, is a little different.

Saying digital commerce is killing off physical stores is thinking lazily and telling a half-truth. Rather than “killing” of the brick-and-mortar industry, there will instead be a shift and an…