Summary:
As the holidays come around, American shoppers celebrate with a traditional shopping event named Black Friday. This year the event lands on Friday, November 27 and similarly to previous years, shoppers go wild for the discount prices. However, it appears as though Black Friday which is supposed to put shops into profit for the year, is losing its significance as more and more shoppers today turn to online retailing. Online retailing seems to appeal to consumers through a variety of ways. E-commerce enables people to compare retail prices quickly and easily. Consumers can also avoid local sales taxes and enjoy the benefits of free shipping. Evidently, online retailing seems to continue to grow in popularity as traditional store retailers decline. In 2008, retail sales only grew by 1% in America while online sales grew by 13%. Not only did online sales grow by a generous amount, but they are expected to continue to grow by 11% in 2009 while retail sales are expected to decline by more than 3% this year. It seems that online retailing now accounts for 6% of all retailing in America and it is expected to gain 3% by 2013. All in all, even though retail stores are trying to win back customers by innovative techniques such as free yoga classes from Lululemon athletica, online retailing will always remain a strong competitor in retailing.
Connections:
Clearly, online retailing is a type of non-store retailer that is rapidly gaining consumer loyalty. Although, online retailing is not mentioned as a type of non-store retailer in the text, it is hard to ignore the fact that consumers everywhere are switching from regular retail stores to online retail stores such as Amazon or eBay. With the many features of online retailing, the internet is quite comparable to mail-order selling. For example, once goods are ordered from the Internet or through mail-order selling, they are then delivered to the consumers' homes through mail or by courier. Also, no sales staff is required for online retailing or mail-order selling. Furthermore, both mail-order selling and online retailing can be specialty stores, selling a narrow range or products, or general stores. Amazon proves this by selling a variety of items such as groceries. Not only does Amazon sell an abundance of products, but Procter & Gamble - an example of integrated channel of distribution, is beginning to sell such things as diapers. In closing, online retailing has become a type of non-store retailer that is growing more in popularity each day.
Reflection:
After reading the article, I am surprised to find that online retailing currently accounts for only 6% of all retail sales. With all of the news on online retailing, I would expect their sales to mean much more than it does now. Evidently, as a personal fan of online retailing, I am not surprised that many people are switching over to online retailing. In my opinion, I enjoy the benefits of online retailing such as avoiding aggressive crowds and long line ups. However, I must agree with the Macy's spokesman, as I will never spend more money online than I would in a traditional retail store. Honestly, my main purpose when I shop online is to look over the products and then visit the store where I can experience the "touch n' feel" factor that online retailers lack. In conclusion, even though online retailing is leaving a mark in retailing everywhere and will continue to excel, I have to say that I still prefer the traditional bricks-and-mortar shops.
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