Thursday, July 7, 2016

Brick & Mortar Struggling, Online Sales Soaring

The global economic insecurities of the past decade are still rattling retailers. But maybe the Great Recession is getting too much of the blame. Rebounding, even surging, sales from online giants such as Amazon indicate that more and more consumers are turning to the web for their shopping.

Major retailers are definitely rattled, though. A June 8th article from CNNMoney reported an announcement from Ralph Lauren saying the company "was looking to cut about 1,200 jobs -- 8% of its full-time workforce." Ralph Lauren isn't the only retail giant taking a beating. Nordstrom, Macy's, and Walmart also announced layoffs.

The ecommerce industry growth at the expense of retail stores isn't just an American problem. An article in Forbes magazine shows that the British retail sector is behaving almost identically to the American retail sector, the trend toward online shopping for apparel indisputable, rising 18.5% while the in-store sales dropped 1.9%.

The growth of ecommerce is directly related to the ease, especially for the technologically savvy millennials. With a smartphone and five minutes, you can check dozens of reviews, compare prices at ten different stores, and order a new sweater. All while you wait for your coffee.

The Takeaway

The retail sector is increasingly overshadowed by online shopping. A strong online presence is a must. With it you'll need a robust shipping system and branded e-commerce packaging. For help with any of your packaging needs, please contact us.

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