It matters not where you live. You see businesses opening, you see businesses closing. That is a normal cycle in the world of retail.
Retail Landscape is Rapidly Changing
Personally, I don’t believe we are living in a normal cycle of retail anymore. Factors within business management are causing retail outlets to change dramatically. “Mom and Pop” stores are rapidly disappearing from the landscape in most areas. Franchise owners are moving in as the Moms and Pops move out. Independent retailers of all stripes are being “squeezed out” by the major chain stores.
Worse yet, franchise stores, in some cases but not all, open and close as fast as others. And there are predictions that the major chain and box stores are facing great challenges in the retail landscape due to the rapid growth of e-Commerce.
Investment Costs in Brick and Mortar Are High
You don’t have to take my word for it. There are a number of articles on the demise of shopping malls and smaller strip malls available for your reading. The staggering investment costs of opening and maintaining a retail outlet far outweigh the costs of online retailing. Mega-malls will likely become extinct within a few decades, but the smaller strip malls will remain. However, the occupants of the strip malls will be service-oriented or retailers of items that likely cannot be distributed online, i.e. restaurants, dry cleaners, bakeries, etc.
Of course, that is only my humble opinion, but let’s see if I can back it up with some articles.
From a Forbes article dated 5/27/16: The World’s Largest Retailers 2016: Wal-Mart Dominates But Amazon Is Catching Up
The article goes on to cite that Wal-Mart is closing retail outlets, while simultaneously beefing up their online operations. Wal-Mart is not alone. Sears, J.C. Penny and other major brick and mortar operations are shutting down stores, while increasing their digital footprints on the Internet. And if you have ever seen the sheer size of an Amazon distribution center, you can begin to understand the changing landscape of the larger retail stores.
The U.S. Department of Commerce announced that the estimate of U.S. retail e-Commerce sales for the second quarter of 2016, adjusted for seasonal variation, but not for price changes, was $97.3 billion, an increase of 4.5 percent (±0.9 %) from the first quarter of 2016.
Internet Retailer, in an article dated 1/29/16, estimated online sales will reach $523 billion by 2020 in the U.S. alone. Imagine what the world-wide total will be.
Location, location, location
Does retailing to others matter anymore? If brick and mortar may not be the future, can I be successful by offering services or products? Yes, it does matter, and yes, you can be successful. But if you are going to offer something of value to others, you better think long and hard about your location before you set up shop. For me and many others, our location selection is the Internet and it’s customer base of millions.
My Success Is Your Success
My decision was to offer a service that includes the potential for my customers to become wealthy beyond their wildest dreams, and I wanted a location that reaches not just hundreds or thousands….I wanted to reach millions. I wanted my success to become their success. Where can one find access to millions of potential customers before deciding on a location? One simple answer….the Internet!
Now is the time to do………..not “try”, but to do. If you ever imagined selling products and/or certain services online, there has never been a better time in your life to “do.” It can be loads of fun, extremely rewarding and very profitable with the right approach and plan. That approach and plan can be found at Wealthy Affiliate.
“Do. Or do not. There is no try.” – Yoda, Jedi Master
I hope you enjoyed my article on Brick and Mortar vs. Internet e-Commerce. I also hope you decide to join Wealthy Affiliate and become successful! If you would, please drop me a comment with any thoughts or questions you might have.