Death of Retail

[julian]

With the death of high street retail I was wondering if we will see more url's being prominently advertised in high street/shopping malls etc. In fact, I wondered if it could end up that a shops position + sheer volume of footfall past a url is worth more and more cost effective than retail sales generated from the shop itself?

 

[EdwinEdwin is verified member.]

With the death of high street retail I was wondering if we will see more url's being prominently advertised in high street/shopping malls etc. In fact, I wondered if it could end up that a shops position + sheer volume of footfall past a url is worth more and more cost effective than retail sales generated from the shop itself?

I see that a lot in shop windows now, e.g. "This store may be closed, but you can shop 24/7 at storename.co.uk". Ditto for products that are out of stock - shop staff will often direct you online (or do it themselves on your behalf, like John Lewis tends to, asking you all the relevant details as they go).

Shops are becoming (billboards + ads + showrooms + pickup points for online orders + returns points for same) all on top of their "regular" role as shops.

It will be the making of some, and the death of others.

 

[julian]

I wonder which type of traditional retail is safe. I guess clothes/shoe shops might be safe for a while as people like to try things on first, the problem is they then go back home and order it online :-D

Can't think of many safe retail outlets apart from the obvious ones..

 

[EdwinEdwin is verified member.]

I wonder which type of traditional retail is safe. I guess clothes/shoe shops might be safe for a while as people like to try things on first, the problem is they then go back home and order it online :-D

Can't think of many safe retail outlets apart from the obvious ones..

Food. Too much is perishable/subjective (e.g. cuts of meat) for people to be willing to switch it all to online. Presumably supermarkets will have to devote more and more energy to promoting delicious-but-short-life products, e.g. bakery quality bread items that should really be eaten same/next day.

 

[bensdbensd is verified member.]

As Edwin has said above, a lot of shops now are places for "showrooming", returns, exchanges etc.

Can't see this changing for the larger shops in a while.

Even the large online brands (amazon, google) etc. have got retail shops/spaces to promotes their products

 

[GreyWing]

There was a CEO of a large com-any, I forget which one. He was giving an interview and said it was cheaper to open a shop on the High Street, run it at a loss than it was to advertise their online business.

So basically he said it was cheaper to run a loss leading shop to support their online site than to pay for ads for their online site.

 

[murph]

I wonder which type of traditional retail is safe. I guess clothes/shoe shops might be safe for a while as people like to try things on first, the problem is they then go back home and order it online :-D

Can't think of many safe retail outlets apart from the obvious ones..

Coffee shops are 100% safe... Well unless the high street completely folds and no one goes into town anymore!

 

[julian]

That is very interesting point, but isn't that exactly what will happen in the end...?

..if shoppers don't go into town to buy clothes/gifts etc, then pop in for a cuppa and some cake after, how can a coffee shop survive - are we seeing a whole generational shift here in retail habits and consumerism.

Well unless the high street completely folds and no one goes into town anymore!

 

[julian]

That is interesting too, I gave up spending 100kpa on adwords a few years back, I could have actually had a good high street shop position and staff. I am definitely in the wrong business.

So basically he said it was cheaper to run a loss leading shop to support their online site than to pay for ads for their online site.

 

[cc976a]

There was a CEO of a large com-any, I forget which one. He was giving an interview and said it was cheaper to open a shop on the High Street, run it at a loss than it was to advertise their online business.

So basically he said it was cheaper to run a loss leading shop to support their online site than to pay for ads for their online site.

Interesting post - and always going to happen.

Businesses went on to the net because it was cheaper to operate. So everyone and their dog created an online businesses. Demand for advertising and awareness got stronger and has so kept pushing up the CPC or rate cards (which has been impacted even further by G creating a brand only club at the top of the SERPs)

PPC on large publisher sites is almost gone now for SMEs on any sniff of a competitive terms, and many running at a loss on the hope of repeat custom and 'social shareness' supporting their loss making advertising campaigns (plus larger brands pushing up CPC prices forcing smaller companies to buckle and fold)

Won't be long before they're moving back on to the high street again (although as some as suggested probably evolved in to front end face, sales and promotion to a backend website), as rates will be lower to incentivise the filling of empty shops - which will then push rent prices back up again.........and all starts over again!