Over the last couple of decades, you haven’t had to look very hard to find news about traditional bricks and mortar shops struggling.
It hasn’t just been small independents that have suffered either, giant institutions of our high streets have closed. Here in the UK, brands like Woolworths, BHS, Oasis, Index, Carphone Warehouse, Evans, DW Sports, Bright House, and many more have disappeared too.
Much of this has been put down to the competition from online retailers like Amazon that have offered customers convenience, low cost, and variety. Through this American behemoth, you can buy a new TV, clothes, food, and some tools to repair your car, all from a single place. You can also stream music, watch original movies and television shows, and even host your website.
Over the last few years, we saw more and more of retail trade move online, but in recent months, that trend has been partly reversed. Is this a sign that e-commerce can never completely do away with brick and mortar stores, or is it just a temporary reprieve from the inevitable demise of our high street?
More Choice Doesn’t Always Spell the End
There are many factors that can be debated about the pros and cons of online retailing, but there is one factor that is undeniable - it offers more choice. This is a numerical fact, even the largest group of the largest of superstores in the largest of cities on earth couldn’t offer as much choice as the internet.
But that doesn’t mean people don’t still want access to traditional options. For example, despite the fact that it’s now possible to order your groceries online and have them delivered to your door, the majority of people still prefer to go and do their weekly shopping in person.
There are plenty of examples of this outside retail too. Fans of card games have been presented with a near infinite number of variants of classic options like poker. Despite the fact that there are many alternatives available, including video poker and Caribbean stud poker, the classic options like Texas hold’em and five-card draw remain incredibly popular.
The same is true about video games, while there are tens of thousands of new titles released each year on platforms like Steam, but the nine-year-old CS:GO remains one of the most popular titles available on it.
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Consumers Want “Experiences”
High streets are not simply a place to buy physical items in exchange for cash. They are a place you meet friends and loved ones, browse, grab a coffee, and enjoy lunch together.
You can’t do any of that scrolling through a page of product listings from your smartphone.
The physical retailers that are succeeding today are the ones that offer more than just a place to buy things. They have attractive (and often Instagramable) decors that are welcoming and exciting. Others run classes to learn how to make things or offer dining options.
Many successful high streets are the ones that offer something unique and not just a repeat of the same chains that can be found anywhere. Examples of this in the UK can be found in Chester and York, where independent and unique businesses thrive.
Physical Stores Can Offer Instant Gratification
Much has been made about Amazon’s Prime delivery service. Customers can tap a button on their phone and have a guy or gal turn up in a blue van the following day, package(s) in hand.
That’s great for most things, but there are occasions when you need (or want) it now.
To get instant gratification, you need a physical store. Argos has recognised this and shifted its strategy several times to cater to customers that are in a rush.
Many of its products are now available for delivery within hours of being ordered or collection right away, giving you a balance of online shopping and same-day availability.
Of course, this model is at risk from attempts by companies like Amazon to begin offering same-day delivery, but that is unlikely to be rolled out nationwide and will likely be limited to a narrower range of products.
It is clear from these examples that there will remain a lot of demand for physical stores in the future, even if more of our spending moves online.
