Are malls a fading fad? With all the brick and mortar stores that have gone belly up because of the economy, is there a reason for them to come back? Will the rest survive? If you can buy literally anything over the web, will there come a day when kids will wonder what the heck their parents mean when they say they once upon a time they physically went somewhere to buy something?
The [Hamilton Consultants] study shows that Internet commerce makes up 2.1 per cent or $300 billion of US GDP. Apparently dotcoms are doing better than they did during the IT retrenchment of 2000-2002 and are no longer folding right and left like used origami paper. The ones that are still around, that is.
More than 10 per cent of retail purchases are now made online and Internet-based advertising revenues have increased to more than $20 billion.
The employment figures are based on people who work directly in building or maintaining the Internet’s infrastructure, or have something to do with advertising or e-commerce and other direct uses.
Taking into account the number of indirect jobs supported by Internet business would double the figures, the report reckoned.
Ah, web commerce. Kinda makes ya nostalgic for the Pets.com sock puppet, don’t it?
Seems to be heading that way. I wanted to buy a book at Borders and they said they had the book on order since it came out two weeks ago. I could have bought it at Amazon for the same price and had it already. With Amazon, you got to buy $25 worth of books to get free shipping. At Borders… I am in a loyalty program, so I get discounts there.
“Apparently dotcoms are doing better than they did during the IT retrenchment of 2000-2002”
??? I sold millions worth of online s/w during that time. Fastest growth period I’ve ever seen.
But if they close down brick and mortar stores, how am I supposed to test out products to decide which one I want before I go online and find the best price?
Since brick and mortar chains have to run warehouses too, how many of the new jobs running a website can offset the number of employees required to operate a physical retail presence. My guess is it’s not even close.
Too bad you’re only up for guessing.
# 4 Sea Lawyer said, “My guess is it’s not even close.”
You would be correct. I successfully transitioned a couple of brick & mortar businesses to a web based model. Net loss of employment but net gain in profit.
If I need something, I check Amazon.com first. I don’t understand why the states haven’t really gone after etailers for sales tax, especially now. Of course I know all of us here voluntarily tallies the tax on their state forms. It’s an easy dodge. A $1500 laptop may be the same price locally or online, but you can save $90 in sales tax buying online. This isn’t even considering the thing can usually be found cheaper, often with free shipping. I would guess that fewer than 10% list the online sales taxes on their returns.
I am buying everything possible on the web, rather than here in San Francisco. Why? Because the governor raised the sales tax 20%! From 5 to 6%. Morons here think it was a 1% raise. Idiots.
So, I buy all I can from out of state. Screw California. And I am stocking up, believe me. Hundreds and hundreds of pounds worth
The B&M stores have one advantage: if your want something close to immediately get in your car (or bus, light-rail, etc…) and go get it. Otherwise buying things online and paying for shipping or waiting 2 weeks for your item may not be to your liking.
I prefer a mix of each. B&M stores will not die out completely, just like newspapers. There is still a place for them and always will be (depends on the store of course).
Well, web commerce will certainly grow and take over the majority of things like books (I think it already has), small housewares and electronics.
But some types of merchandise will always be primarily brick and mortar. Groceries, because you need it fast, close and you want to pinch the tomatoes. Hardware, because you need it NOW to finish whatever you are doing. Large appliances and electronics since shipping them is impractical. Clothing and linens tend to be more of the “try it on” or “cop a feel” sort of thing, though both certainly will have a good percentage of web sales. Shoes….I’d never buy shoes without trying them on, with the exception of knowing the exact brand/model number/size that I already have and ordering another pair.
No groceries, appliances, furniture, cars, other large ticket items, but for books, CDs, DVDs, small appliances, etc., let ‘er rip.
Those who have pointed out the sales tax advantage are correct.
I love to shop on line. It has every advantage except two.
Shipping costs and when you get it.