Are we witnessing the end of retailing?
Published October 11, 2018
By Tom Campbell
by Tom Campbell, Producer and Moderator, NC SPIN, October 10, 2018.
About this time each year we looked forward to receiving the Sears Wish Book. This wonderful catalogue was about three inches thick, packed with thousands of items. It was the official kickoff to Christmas and long before Thanksgiving its pages were dogeared, ripped and marked with all the toys and games we wanted from Santa. You could phone in your order and have it mailed to you.
Until 1989 Sears was the largest and one of the most profitable retailers in the nation, but is now closing stores left and right, losing millions of dollars and facing bankruptcy. They aren’t alone. In 2017, Toys R Us, Hhgregg, The Limited, RadioShack, Gymboree, and Gander Mountain filed for bankruptcy – more closures in one year than ever recorded. What’s caused these and other iconic retailers to meet to their end? The very nature of shopping, especially retailing, has changed and many stores haven’t or couldn’t adapt quickly enough.
The revolution Richard Sears started in the 1890s with his catalogue is coming full circle through the Internet. Jeff Bezos and Amazon are the public face of today’s reality. I watch the UPS and FedEx trucks come into my neighborhood every day. My neighbors (and I) like the convenience, product availability and perceived savings of buying online.
With their smart devices, today’s consumers are savvier than ever, but retailers are also. They hand out cards, like the VIC,VIP, MVP or others, and we feel satisfaction when told how much money we saved using their loyalty program. But do not be misled. Some data server somewhere is cataloguing everything you buy and these retailers know more about your shopping habits than you can imagine. Every month my grocer sends us coupons of the items we frequently purchase, trying to lure us back to their store.
We can now go online and purchase most anything, choosing between having items delivered to our door or, in some instances, driving to the store where our purchases are brought to the car. One vendor allows you to purchase a car without having to go to a dealership and go through the hassle of negotiating. Delivery can be taken from what looks like a giant vending machine or by having the vehicle delivered to you. Amazon is testing a concept in which there are no check-out lines. You take your time perusing merchandise, putting those items you want into a cart. When you have finished shopping just take your goods out of the store and within minutes a message on your smart phone itemizes your purchases and how much your credit card has been charged.
Brick and mortar retailing isn’t dead, but the rapid pace of change is impacting personnel, space and inventory requirements. Where will it all end? No one is predicting that all shopping centers will be shuttered, however many big box retailers will close and repurposed to smaller special boutiques, for those who enjoy the experience of shopping, or for offices or apartments. Local merchants might enjoy some advantages if they mix the technology and personal relationships.
Are we forcing these changes or just trying to adapt to them? There are moments when I wistfully want to return to simpler times, but we cannot stand in the path of change. We must adapt.
October 12, 2018 at 6:36 am
steve wood says:
Tom, another aspect of this retail revolution econometric is the shuttering of large-scale malls all over our state and the country. Of course, I seldom shop at the malls near me, but a lot of my family and friends have over the years. In High Point, for instance, the first 'mall' there was Westchester Mall---which was purchased by First Wesleyan Church and now functions as the epicenter of its expansive ministries. Then, I remember well all the fanfare with the opening of Oak Hollow Mall, the pride of High Point at the time, which was recently acquired by High Point University. I am sure this scenario plays out all across the state and nation.
