Of late, UK’s High Street has been topping headlines with news of sold out companies and store shutdowns which are now sending chills down the spine of many market players.
The latest rumors of the possible split and sale of Arcadia Group to prevent its closure, and the shutdown of many other shops have left brick-and-mortar retailers worried about the future of physical stores.
But some analysts feel— and most of us agree— that online retail, or ecommerce as many love to call, it is to blame for the fall of this former giant sector.
Ecommerce, the practice of selling and buying items over the internet, is particularly loved for its convenience. And though it makes up for less than 20 percent of Britain’s total retail sales, a few tweaks in some aspects of customer experience may turn things around in the near future.
According to a report by Retail Economics, with improvements like faster shipment and delivery as well as personalized experiences, combine with the fact that UK citizens are toiling more and harder than before, ecommerce could make up more than half (53 percent) of retail transactions in less than a decade.
Ecommerce is well-liked for some obvious reasons;
- Less expensive in terms of rent
- Low operational costs
- You can sell goods or services that you do not own, for instance eBay is a market where others sell goods.
But this new way of buying and selling items is not without its weaknesses. For instance, it limits the human-human interaction that makes business possible. This kind of engagement is not only important in ensuring brand trust but is also essential in solving customer problems or sealing deals that require a one-on-one interaction.
Brick and mortar still play a critical role in enabling one-on-one business; which begs for a balance between online retail and physical stores. But it’s like ecommerce merchants have realized the need for human interaction; no wonder most of them are putting up physical stores to serve their customer bases.
It may be the rise of ecommerce, but it also marks the fall of brick-and-mortar. We may never see UK’s High street as busy as it was a decade ago unless physical store owners get really creative and give customers concrete reasons to go back to brick-and-mortar shops.
Author Bio: Payment industry guru Taylor Cole is a passionate payments expert who understands the complex world of worldpay customer services. He also writes non-fiction, on subjects ranging from personal finance to stocks to cryptopay. He enjoys eating pie in his backyard porch, as should all right thinking people.