How to account, then, for the increases in retail sales? Yep, it's the internet.
Shopping isn't declining. People still need to buy what retailers sell. But to survive, retailers must be where the shoppers are. And that means being on the internet.
However, having a robust e-commerce capability can be very daunting. And expensive. But not having those choices for your customers can be fatal. And that's where "shopping platforms" - like Amazon Merchants - must be considered.
We know. Some retailers reject this as a matter of principle. "That's like getting in bed with the devil", they grumble.
We understand that concern. But, in our view, retailers should regard these shopping platforms as the contemporary shopping mall.
It used to be that when considering where to lease space for your store, you would compare a shopping mall to a free-standing location. The mall required higher rent, plus CAM charges. And rules about what hours to be open. Grumble, grumble.
But, that's where the shoppers were! As a free-standing store, even a "destination retailer", your advertising budget was just a drop in the bucket versus the mall's presence.
Retailers always must be where the shoppers are. Today's shoppers increasingly are on the web, not in the malls. If you are not already there, or need to expand your presence, we urge you to investigate the increasing array of options. Not just Amazon and eBay, but now Facebook and Pinterest, for example.
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