Nothing We Don’t Know … eCommerce Continues It’s March on Brick-and-Mortar
Insight ⇒ Retailers Continue to Take Hits … Even a Start-up in a Hot Category
Several items hit the news the past few weeks portraying the dismal future for brick-and mortar retailers.
- OfficeMax founder Michael Feuer closed the last of his MaxWellness start-up stores this week. Even in the hot health and wellness product category, he could not sustain enough traffic to get it off the ground. The big box retailing legend was surprised by the metamorphosis in store retailing, “Once we got into the business, the sad part is that retailing as we know it is changing. What we found was that the stores were way too big and costly to operate. I think retailing — and not just Max-Wellness — faces radical changes”.
- Best Buy CEO Hubert Joly commenting on 2nd QTR results which showed a 6.7% decline in comp sales. “Like other retailers and as reflected in this quarter’s performance, we continued to see a shift in consumer behavior: consumers are increasingly researching and buying online. As a result, traffic to our brick and mortar stores continued to decline.
Insight ⇒ Nielsen Reports eCommerce up 20% Globally for Consumer Purchases
In its recently released ‘Evolution or Revolution’ eCommerce study, Nielsen reveals that eCommerce globally is shifting into even a higher gear
- Online purchase intention rates have doubled in three years for 12 of 22 measured categories
- Consumable products have a one-to-one browse-to-buy ratio
- Millennials make up more than half of those who intend to buy online
Consumer products with consistent 1-to-1 browse/buy rates
Click to enlarge
Consumer products with higher buy than browse rates
Consumer products with lower buy than browse rates
Do This ⇒ Don’t Underestimate the Power of the Internet
- Design marketing to go omnichannel … consumers browse and buy wherever and whenever they want
- Millennials and future generations are not going to run into stores for many items in the future
Not That ⇒ Don’t ‘Be Surprised’
- As Michael Feuer stated, “Once we got into the business, the sad part is that retailing as we know it is changing”
Zig is a Social/Mobile consultancy that drives brand engagement by creating interactive user experiences. We programmatically reach in-market buyers, at the lowest cost, and move them to conversion. You can see our work by clicking on the link ⇒ http://www.zigmarketing.com.
