Why Retail Stores are in Danger
Regardless of what your personal buying patterns are, retail stores are being attacked and will likely begin to close down.
The Amazon Affront – Amazon has made it incredibly easy for anyone to buy what they need online and have it shipped to their home. Since most things people buy are non-essential, it is more convenient and often more cost-effective to buy through Amazon and wait the two days for it to arrive at their door.
The K-Mart Effect – Target vs. Wal-Mart. Now that Amazon has taken the ‘want-to-buy’ out of the equation, the only thing left is the ‘need-to-buy.’ Subtracting smaller retail chains like commercial chains and designer chains (think Ross and the Banana Republic respectively) you are left with the K-Mart Effect.
When people want to go for cheap supermarkets, they go to Wal-Mart, when they want something a little more upscale and enjoyable, they go to Target. When you’re K-Mart, you can’t be both, and you can’t be either, so their sales suffer while the other flourish off the indecisive.
Will Retail Stores Be Non-Existent In 5 Years?
What defines a Retail Store – Retail stores are brick-and-mortar establishment that sells goods to customers. Think of Marshall’s, Ross, Tuesday Morning, and also the bigger groups like Walmart and Target.
How Immediate Are These Effects?
Technology moves quickly. Most people are starting to transition over to buying things online exclusively. When you include businesses such as Carvana (which has a business model of selling cars to people online and towing it to their home), it’s easy to see how quickly the Internet moves.
While I do think that Retail stores will be gone in time, I don’t think they will ever be completely gone, and I would suspect total dominance by 2050.
The New K-Mart Effect
No longer Target vs. Walmart. The concept is no longer about your Walmarts and your Targets. Now it’s a matter of what platforms will work better for you?
It’s going to be more like Etsy vs. Amazon.
Do you work with the online retailer that gives you endless benefits and great prices? Or do you go for authenticity and original creations from people you can relate with?
Mom & Pop vs. Amazon – The crux of the debate for retail stores existing has to do with people vs. a conglomeration. If you want to see what the future of retail looks like, don’t look for clothes and retail, look to the local grocers.
Grocery Stores vs. Farmers Markets
For years grocery stores have been slowly gobbled up by larger grocery chains and establishing their market dominance. The only groups that seem to be able to maintain their identity have been deli’s which have always maintained their butchery roots.
However, with the boom of grassroots movements and the streamlined communication of the Internet; Farmer’s Markets have begun to thrive again in a world where people are looking for the small, looking for the local, and looking to support anything other than big business.
Amazon Pantry & The Whole Foods Acquisition
But Big Business has arrived. Many people now can order their staple goods from Amazon Pantry and have it delivered to their door. The usage of the Dash button removes the need for a computer to order more of the items you use on a regular basis. The only thing that Amazon was lacking was the ability to compete with perishables such as milk, produce, and meat.
Exit Whole Foods. With the acquisition of Whole Foods, Amazon continues its march into the market of grocery stores. Now they have convenience, and they are streamlining the inconvenient part under their own umbrella while making it a better option for everyone involved. Workers from Whole Foods receive the same benefits as Amazon employees and prices have dropped now that the company has a stable backing of income. If the worker wins and the buyer wins, does anyone lose?
What We Think
“As the world turns to tech, I believe that retail stores will not exist in 5 years. It’s just easier, more affordable and more convenient to purchase your goods online.”Chad Kodary, Chief Executive Officer
Will there be Retail stores in 5 years? I believe so. I think that the slow spread of Amazon across the marketplace will prove to be too fruitful an investment for most Americans and that eventually, they will become the dominant force for anything you could ever want in America.
With their future patents on flying warehouses, drone delivery services, and in-store, cashless shopping for groceries, they have the resources and the capabilities to become the all-encompassing everything that the country needs.
They’re cornering the online streaming services with their Amazon prime shows that you can watch on your Fire TV. Maybe you’ll sit down on your AmazonBasics couch and watch it with your family while eating some great pasta made with Rotini delivered to you and milk you got from the store; it didn’t take long, you just had to run in and grab it and Amazon already charged your account before you left the doors. Life in the Concrete Jungle is going to be much easier when you realize you’re in the Amazon.