The death of brick and mortar retail is exaggerated. Retail isn’t dying, it’s just changing!
A Retail Round Up
Over the past decade, there’s no denying the fact that customers’ tastes, demands, and purchasing patterns have changed quite drastically, compelling the retail industry to change with them. The change in the industry’s dynamics is largely perceived as a ‘retail apocalypses’, leaving thousands of brick and mortar retail stores to close in its wake. However, this is not the only reason. Ever-evolving preferences and inclinations, lack of wisdom to run a retail establishment in the competitive environment, large upfront investment botches, and increased trust in e-commerce retail stores like Amazon, eBay, Alibaba and other similar online retail stores are a few of the major reasons causing retail establishments to shutdown at a massive rate.
The surge in the popularity of e-commerce retail stores bears testimony to the fact that online shopping is growing among millennials. They love to buy their favorite products online and get them delivered to their doorsteps with easy payment schedules. They have actually found an easy way out to save more time for themselves without having much to worry about. This is certainly one of the reasons causing the death of brick and mortar retail stores. However, when we look at the bigger picture, we are surprised to find that online shopping equates to only 8.1% of the total retail sales in 2017.
What Do Statistics Say About The Retail Meltdown?
According to the survey results compiled and revealed by one of the leading international retail agencies, worldwide retail sales accounted for $23.45 trillion in 2017, which is expected to grow and reach a whopping $27.73 trillion mark by 2020. Undoubtedly, brick and mortar retail is perhaps never going to die as long as this planet Earth exists and people are alive. There are times when a business or an industry has favorable grounds to thrive and vice versa. The brick and mortar retail industry may have seen a retail meltdown for the past few years, but that doesn’t mean that the industry has no chance to survive hard times and fight back to retain its lost image.
Why Retail Store Chains Are Facing The Most Closures
The predominant reason that is causing the death of brick and mortar retail stores is large upfront investment failures. Retailers, when they see profit margins and achieve success in any specific locality, get excited about opening more of their retail stores in different areas. This excitement often leads them to set up more stores and spend carelessly on improving their in-house customer experience and facilities. The great sums of money spent on creating an ideal shopping environment are largely misunderstood by most of retailers. Often, they spend impractically and unreasonably on creating an extravagant shopping environment, which increases their investment and costs. This, besides expanding their operations, causes the death of a brick and mortar retail store.
What Should Be Done To Prevent The Closure?
In order to maximize cost reduction, you must first cut down your large upfront investment and allocate adequate resources to get things moving seamlessly in the right direction. Secondly, you must provide an exquisite shopping experience with a unique in-store service. Also, you must a hire a professional accountant for bookkeeping services who will provide you with a clear picture of your finances, tax details, bank loans, etc. for better financial decisions. Moreover, you must reevaluate your retail objectives and retail establishment’s strategic mission, especially your supply chain channels. Last, but not least, you must do a root-cause analysis of each problem and come up with a relevant strategy to recover from the crises situation. By taking all of these effective measures, you can expect to prevent the death of your brick and mortar retail store.
Brick And Mortar Retail Is Still King!
The death of brick and mortar retail is nearly impossible. Although thousands of brick and mortar retail stores may be closing their doors due to bankruptcy or lack of creative wisdom to stay competitive, online retail stores and their total earnings can never come near to the overall earnings of brick and mortar retail stores around the globe–at least any time soon. This makes it safe to say that brick and mortar retail is still king (or queen!) and all of the stories associated with the death of brick and mortar retail are baseless.
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