Will Brick and Mortar Stores Die Out?

[ponyboy]

that's why alcohol, tobacco and firearms stores won't get betamaxed

I disagree. The last 2 hand guns I purchased I bought online and shipped to my local gun store simply because it has to go through them. What if in the future someone like a notary service can receive firearms purchased online and process the proper paperwork?

I also buy all my ammo online...way cheaper than B&M stores. The only benefit to a gun store is getting to feel the guns in your hand, how they feel, weight, trigger pull, etc etc. You can have one massive store kind of like a cabelas...although their gun inventory is pretty bust.

 

[bUU]

Some brick and mortar stores will...others will survive. Primarily clothing stores will survive. Its one of the few things people like/need to try on in person. Something can look great but on it doesnt fit right, doesnt feel right, not comfy, etc etc. There will always be a market for that.

Yeah I know people buy tons of clothes online, try stuff on and return what they dont like...its a very small percentage.

However, that may change, and if it does, as with many other things, a critical mass of folks getting comfortable with the buy, ship, try-on, ship returns if necessary approach (which could develop even faster if there's a cost advantage) could make even B&M clothing stores unprofitable except as boutiques. It is always a discomforting thought that our own preference may someday be subjugated to some kind of critical mass of folks of a different persuasion, but I'm steeling myself for the fact that that sort of thing is going to happen with increasing regularity as I get older. (And, to be fair, has been happening to each successive generation as they got older - though I think "the rate of increase of the rate of increase is increasing." )

 

[Big_Hitter]

I disagree. The last 2 hand guns I purchased I bought online and shipped to my local gun store simply because it has to go through them. What if in the future someone like a notary service can receive firearms purchased online and process the proper paperwork?

I also buy all my ammo online...way cheaper than B&M stores. The only benefit to a gun store is getting to feel the guns in your hand, how they feel, weight, trigger pull, etc etc. You can have one massive store kind of like a cabelas...although their gun inventory is pretty bust.

I was being a "little" sarcastic - I bought an AK-47 off the internet several years go and had it shipped through a FFL but I still think most people like to go to the gun store and check out inventory in person. I don't think buying firearms on the internet is that much cheaper. Ammo though for sure.

 

[MichaelB]

I suspect brick and mortar storefronts will go the way of the paperless office. It'll happen someday, but that day manages to stay just out of reach.

 

[W2R]

I have one grocery store that I regularly visit and it has the key characteristics that I would like to see in any retail outlet that wants my business: 1) It's calm and quiet - no music, 2) The inventory is limited, they don't carry 10 brands of canned green beans, for instance, but they have everything that you need, 3) their prices are more than competitive, 4) they don't try to lure a shopper in with loss leaders, their prices are what they are, and 5) the store is organized so that you can get in and get out.

Bonus points if you guess the chain.

Walgreen's? After my cataract surgery, I did not want to drive far, lift anything heavy, or do a major grocery shopping so I went there to pick up a half dozen grocery items. I was pleasantly surprised to discover that their prices for the few things I purchased were closer to "moderate" than to "outrageous". Oh, but I suppose they do have loss leaders. I never read the Walgreen's ads. Anyway, it was nice to be able to get a few items without making an afternoon of it.

 

[Big_Hitter]

I suspect brick and mortar storefronts will go the way of the paperless office. It'll happen someday, but that day manages to stay just out of reach.

we're paperless

 

[ivinsfan]

I am a part of the problem, as well. Putting aside the fact that I really don't spend much money on ANY kind of shopping, here's why I don't shop B&M:
1) I have to drive to get there,
2) There are often crowds of people to fight,
3) I find most stores unpleasant environments with their choices of "music",
4) B&M stores are not well organized for quick visits - IKEA being only the worst example,
5) B&M stores are not well organized for price comparisons,
6) etc.

I have one grocery store that I regularly visit and it has the key characteristics that I would like to see in any retail outlet that wants my business: 1) It's calm and quiet - no music, 2) The inventory is limited, they don't carry 10 brands of canned green beans, for instance, but they have everything that you need, 3) their prices are more than competitive, 4) they don't try to lure a shopper in with loss leaders, their prices are what they are, and 5) the store is organized so that you can get in and get out.

Bonus points if you guess the chain.

That sounds a lot like my local Aldi's store and even better, no long checkout waits more then 2 people in line they open up more lanes....

 

[travelover]

I suspect brick and mortar storefronts will go the way of the paperless office. It'll happen someday, but that day manages to stay just out of reach.

It is like flying cars - 10 years away, perpetually.

 

[jjquantz]

That sounds a lot like my local Aldi's store and even better, no long checkout waits more then 2 people in line they open up more lanes....

Ding, ding, ding. We have a winner!

 

[Walt34]

Agreed that B&M grocery and clothing stores will probably always be around. Some stores are doing both like Cabela's and B&H Photo. I've never been to either store but I've spent plenty at both. (Mostly what I buy at Cabela's is warm clothing not available locally.)

There was a medium range photography store about 30 minutes away but they closed about a year ago, as did the local Sears store. Come to think of it, I think it's been about a year since I was inside the local mall and I was struck by how deserted it was then.

Oh, another type that will probably always have B&M stores is furniture and mattress stores. People want to sit on the couch and test the firmness of a mattress, although we have bought some furniture items online like the desk I'm using now.

 

[Lsbcal]

All certainly won't die out. But certainly some are doomed.

Take the Apple Store as an example. That store is thriving and helping their business. But it is really nothing like a Best Buy (or remember Gateway country stores? They died about the same time Apple stores arrived).

Apple stores are (a) nice places (b) located in upscale shopping districts (c) offer a great place for tech supports and service (d) have are among the friendliest people working there (e) also let you try out new stuff if you like. They do not force you to buy there.

B&M stores that cater to a real need will do fine.

I'm not an Apple fan but recently went into their store with a specific objective. I wanted to buy an Ipad Mini 2 on sale through Walmart.com (of all places). I was upfront about everything and the young lady that helped me was fantastic. No looking bored or checking out other people. Good eye contact and made me feel welcomed. Probably with Apple's great profit margins they can afford to actually hire good people and train them well.

BTW, I was buying the Ipad Mini because we were going to discontinue our local paper. It works great and I don't have to go out on Sunday's to find that the paper is not yet delivered. The digital version is free ... so far. Someday we may have to actually pay for it.

 

[audreyh1]

It is like flying cars - 10 years away, perpetually.

Hey, I have one of those Dick Tracy watches.

 

[Chuckanut]

FWIW, I would probably have done more Christmas shopping in real stores if they actually had some real Christmas spirit in them. No more store Santas except for those demanding money for photos. Decorations are designed to say nothing so nobody is offended. No way to help the less fortunate other than spending money at the store and dropping something off before leaving. And the 'season' starts at least six weeks to early. They really seem to celebrate a neutered festival that could have been made up by an TV comedy character. Oh! wait! That did happen. And that's what the malls are celebrating - nothing.

So, if the stores and the malls don't feel like a real Christmas, why bother to shop there?


The worst decisions are made when angry or impatient.

 

[bUU]

Probably with Apple's great profit margins they can afford to actually hire good people and train them well.

That's key. The allure of online shopping is how much of a bargain it is, by comparison, and that's possible only due to economies of scale. If you cannot "make it up in volume" like that, then the only hope is to "make it up in margin".

FWIW, I would probably have done more Christmas shopping in real stores if they actually had some real Christmas spirit in them.

So that makes the challenge for B&M even more difficult. That which would motivate you to patronize them undercuts a store's mission two ways: It would add a certain amount of cost to thousands of sales (instead of adding much less cost to millions of sales), and it would narrow their target market to those who are looking for your particular brand of Christmas spirit, i.e., one unconcerned about offending patrons at whom the "decorations designed to say nothing" were aimed.

We've all become much more expectant about that which wants our attention (and our money). A hundred years ago, many folks were in a situation where they were satisfied just to have a place where they could actually purchase things. Now, that store must either speak to our soul or offer the absolute lowest price available.

I cannot imagine we have a hope, today, of anticipating how these changes in our attitudes and the changes in technology will affect how we buy things twenty or thirty years from now. Some things we expect to change probably won't, but mostly what I expect is that many things will change that we expected would not.

 

[HFWR]

we're paperless

Amazon can fix that...

 

[haha]

So, if the stores and the malls don't feel like a real Christmas, why bother to shop there?

I agree 100%. To hell with all of it. And not very long ago I enjoyed much of the commercial activity around Christmas. I consider this a real loss.

Ha

 

[ESRwannabe]

Outside of food and household items I buy pretty much everything else online. Its much more convenient than physical stores.

Movies, music, video games and books are all a no brainer as you can buy the digital copy and have it available in seconds.

I prefer buying clothes/shoes online as well as its easier to get the size I need. With Amazon if I am trying out a new brand I'll order one pair from multiple brands and try them on. The ones that fit I keep and the ones that don't I send back. I have amazon prime so the shipping is free.

Will stores die out? Yes many of them will. At some point even grocery stores will be displaced. Once self driving cars come out things will really change.

People are also going to have less need for owning cars and housing. It will be more economical to use a service like uber than to own a car and once its all automated with self driving vehicles there won't be any inconvenience to it. For housing, most people will be telecommuting to work. So I expect people will take advantage of that and travel/move around a lot more. My guess is that cities will need to fight for residents by offering low taxes or other incentives. Why work in a crowded expensive city when you could telecommute from a beach town in Mexico, Thailand, etc? If the dollar is still the reserve currency there will be a big incentive to expat outside the US where you can get more value for your money.

In time I could see countries needing to compete for citizens. Especially with the birth rate declines. Government might actually be forced to care about their citizens.

 

[Major Tom]

I was thinking about this thread when cycling alongside Lake Merritt this morning to the local Trader Joe's here in Oakland. There are many pleasant shopping areas here that are not mall-based - just streets lined with store-fronts and plenty of pedestrian activity (Lakeshore Ave, College Ave in Rockridge, and Piedmont Ave, just to name three, for those familiar with the area). Many of the businesses are small mom and pop types. In stark contrast to large malls, I really enjoy cycling and walking around these areas and visiting the various stores. In this type of setting, commerce feels like a natural and welcome part of life. We have a popular Farmers Market on Saturdays, and the place bristles with activity. It is so much more of a human experience than the soul-killing (IMO) experience of visiting an indoor mall jammed with corporate chain stores.

My purchases are a mixture of online and B&M ones. B&M is certainly going through a realignment but, at least where I live, it shows no signs of going out of style. I won't miss the downtown Sears store that recently closed though. It had been feeling like a dinosaur for years.

 

[HadEnuff]

I think that the B&M shopping experience will change from mega-store experience (Wal-mart, large department stores etc) to smaller, more specific inventory experience where a customer might want to talk to a KNOWLEDGABLE salesperson. It will be more expensive than finding it on-line. But the need for some help, and the desirability and importance of having the right thing, TODAY will sell the deal.
There is a small hardware store that I know when I walk in if I am not sure what I need, how it will fit, etc. they will help me. I pay a bit more.
However, if I want new underwear, no way I'm driving 2o minutes to Wal-mart to spend another 20 minutes sorting through the store, the scrambled up shelves etc and then standing in a check-out line (25 registers in the store, 2 of them actually open)...nope.
Wall-Mart put Mom&POP out of business, and if the internet puts them out of business, too bad.

I went to Dick's a couple of years ago, and stood in line to check out. 15 registers, one open. 10 people in line. Two "manager" types folding sweaters. I suggested they open another register. One of them said, "we can't, not for 45 more minutes"...and this was between Thanksgiving and Christmas. I said , "really? Well since you would rather organize the shelves, and I can buy all of this on line, you can put this stuff back, and I'll go home and buy all of this cheaper on line. Be sure to relate this experience to your boss some time" and I haven't been back to Dick's since.

 

[bUU]

I think that the B&M shopping experience will change from mega-store experience (Wal-mart, large department stores etc) to smaller, more specific inventory experience where a customer might want to talk to a KNOWLEDGABLE salesperson. It will be more expensive than finding it on-line. But the need for some help, and the desirability and importance of having the right thing, TODAY will sell the deal.

A couple of posters have said that, and perhaps it is part of what I said earlier in the thread. However, the key to that working out is finding a way to ensure that consumers will not capitalize on the service offered by the B&M retailer, and then turn around and make the purchase from the lowest-cost (i.e., online) retailer.

How will that work?

 

[athena53]

Maybe the next generation is different, but there are some things I like to see before I buy, especially fruits and vegetables. DH and I enjoy grocery shopping and have been doing it together for almost 20 years now.

I also prefer to try on clothes and shoes although I did go on a buying streak with a brand of dress shoes on-line, buying the marked-down ones on the store's web site. That was after I bought the first pair at a local store so I knew what size fit. The store is now going out of business.

DH and I try to avoid things made in China when there are alternatives-fat easier to do in person.

 

[Senator]

Many retail companies will die completely, whether they have brick and mortar or not.

I buy more and more stuff directly from China or Hong Kong. I am not sure how that can sell and ship stuff so cheap. Some of it is truly junk, some is the same stuff you would buy locally for 10x the cost.

Now that online buying is mainstream, buying directly from the manufacturer will be the next wave. Skipping the cost of the retailer, the trucker, the shelf stocker, the janitor, etc. of a local store, or an online retailer.

Amazon doesn't make anything they sell, they just make the connection between the buyer and seller. The connection Amazon makes is more likely to be another retailer, not a manufacturer.

Buying directly from the manufacturer will allow a huge savings to consumers, and eliminate much of the middle-man markups. Eliminate the markups, and you also reduce any sales taxes as the price paid is lower.

 

[HadEnuff]

A couple of posters have said that, and perhaps it is part of what I said earlier in the thread. However, the key to that working out is finding a way to ensure that consumers will not capitalize on the service offered by the B&M retailer, and then turn around and make the purchase from the lowest-cost (i.e., online) retailer.

How will that work?

I'm referring to stuff I have to have today, like a toilet bowl flapper. Anything discretionary, the trend will be buy on-line.

Also, things like large appliances. I don't see myself buying a washer-dryer on-line. The trend of the large stores making on-line purchases deliverable to the store will help them compete to some level.

But a lot of things are just so much more efficiently handled on-line, the market will shrink considerably. But I don't think it will disappear completely.

 

[haha]

I was thinking about this thread when cycling alongside Lake Merritt this morning to the local Trader Joe's here in Oakland. There are many pleasant shopping areas here that are not mall-based - just streets lined with store-fronts and plenty of pedestrian activity (Lakeshore Ave, College Ave in Rockridge, and Piedmont Ave, just to name three, for those familiar with the area). Many of the businesses are small mom and pop types. In stark contrast to large malls, I really enjoy cycling and walking around these areas and visiting the various stores. In this type of setting, commerce feels like a natural and welcome part of life. We have a popular Farmers Market on Saturdays, and the place bristles with activity. It is so much more of a human experience than the soul-killing (IMO) experience of visiting an indoor mall jammed with corporate chain stores.

My purchases are a mixture of online and B&M ones. B&M is certainly going through a realignment but, at least where I live, it shows no signs of going out of style. I won't miss the downtown Sears store that recently closed though. It had been feeling like a dinosaur for years.

I feel this way also. One problem locally is that as land values and commercially zoned sites get more and more expensive we lose a lot of the small service businesses that cannot pay high rents. So instead of a shoe repairman, dry cleaner or small clothing store or gallery we get another apartment or condo building. Recently my shoe repairman who is the latest in ~100 years of his family repairing shoes in this same neighborhood has been outcompeted for space by a marijuana dispensary.

Ha

 

[mpeirce]

I went to Dick's a couple of years ago, and stood in line to check out. 15 registers, one open. 10 people in line. Two "manager" types folding sweaters. I suggested they open another register. One of them said, "we can't, not for 45 more minutes"...and this was between Thanksgiving and Christmas. I said , "really? Well since you would rather organize the shelves, and I can buy all of this on line, you can put this stuff back, and I'll go home and buy all of this cheaper on line. Be sure to relate this experience to your boss some time" and I haven't been back to Dick's since.

Service matters even more these days. Any store with a culture like you describe won't make it.

On the other hand, those that try hard might. Our local Kroger's (grocery store) does try. There is almost never a wait at the check out - they open a new one if there is more than one person waiting. They offer tastes of the cheeses and produce (I like to taste the apples, such a difference between good apples and old apples!). They even keep a special cold case up by the checkout filled with eggs and milk so people don't have to walk to the back to get them if they are just picking up a couple of item. There prices are generally higher than the local Aldi (and Walmart and Meijer and Giant Eagle - all within a few miles), but the place is well run and it keeps me coming back.