How Brick and Mortars Compete Against Amazon

How Do Brick and Mortar Stores Compete Against Amazon?

“Online sales make up just 7% of overall retail sales and that number is expected to grow to nearly 9% by 2016. Americans spent more than $200 billion on-line last year and are expected to shell out more than $327 billion on Internet stores by 2016.” (Scherzer, 2012). This goes to show that while some like the convenience of purchasing on-line from the comfort of their own homes, many prefer an in-store experience where they can touch and evaluate the product before they buy it.

According to a study commissioned by Google, it was discovered that “half of shoppers will research products online and then buy in-store, while 17% will first visit a store and then purchase online. Another 32% will research online, visit a store to check out the product, then go back online to make the purchase.” (Scherzer, 2012). The current trend is what retail experts call an omnichannel “a seamless approach to the consumer experience through all available shopping channels, i.e. mobile internet devices, computers, bricks-and-mortar, television, catalog, and so on.” (Moth, 2012). The result is a more sophisticated consumer who is able to make informed decisions before purchasing a product.

If 7% of overall retail sales are on-line, then why are brick and mortar stores (i.e. retailers) so concerned and why are some going bankrupt and out of business? Some retailers are being wiped out because they do not have an online storefront, some companies have folded because they failed to promote their own products, and some have failed to offer their services with an online storefront. Online storefronts will continue to wipe out retailers who do not take advantage of opportunities to promote their products and services online.

Some large corporations, independent traders and business owners no longer need to have a lot of office space or huge retail properties, because they operate entirely online. Commercial buildings...