It’s no secret that the traditional brick-and-mortar retail industry is struggling. In 2017 six thousand and seven hundred retailers closed their doors for good, that’s a new record. Online retailers like Amazon are making consumers think digital first. 30 percent of all retail sells happen between Black Friday and Christmas. Giving retailers just 31days to make or break their year, but for some retailers, it might be too late: JCPenney, Macy’s, RadioShack, Sears, Kmart, and Toys R Us have all closed hundreds of stores this year some have even filed for bankruptcy.
All of these brands point to increased competition from online retailers as part of the problem. 59% of holiday shoppers said that they would be shopping online this year, and it shows. Consumers spent five billion dollars online in just 24 hours this year and that’s where our story picks up. We wanted to give everyone a taste of what Christmas looks like in California so we went to the beach! In a recent survey it was found that the average American consumer will spend about nine hundred and sixty-seven dollars this holiday season, but where will they spend it?
Online or in person?
Definitely online! I would probably do it online. I’ve already done it all online. I do online for convenience. Everyone we talked to you said a majority of their holiday shopping would be done online this year, but the bad news for traditional brick-and-mortar retailers doesn’t stop there. What a lot of consumers do is what’s called show rooming. That means they go to a brick-and-mortar store to look at a product, but they end up buying it online because they found a better deal. It’s just to actually get a feel of it in stores. I see like the set in stone price and then online I can see it I can see it for the much better deal.
Online you can find anything
Show rooming makes sense when you look at the data 64 percent of consumers said that they plan to use their Smartphone to research a product or make a purchase this Christmas So why do people love shopping online instead of in-person? 94% of consumers say that free shipping is the most important factor in deciding where to shop. Only 47 percent said a convenient location was important. Those two stats help tell this Christmas shopping story.
When free shipping is more important than location writing’s on the wall. Merry Christmas! As the sun literally set on Black Friday it was time for us to head home Do you think we can cross online shopping versus in-person shopping off our list? I think there still a lot to learn but I can tell you one thing. I did way more online shopping this year than I ever thought was possible well that’s true and I think the real winners in this space will be the companies that can do both really well think about Amazon they’re the number one retailer online but then they went and bought Whole Foods so they can have an in-person presence.
That’s in comparison to Walmart which is clearly number one and in person presents brick-and-mortar but over the last few years, they’ve really focused on digital that’s given them the number three spot underneath Amazon and eBay.