I Wonder Why Brick and Mortar Stores are Losing Customers?

[Qs Laptop]

I can give a couple of data points as to why brick and mortar stores, especially department stores are in danger of going bankrupt.

Last Thursday afternoon, the 13th, I ordered a men's polo shirt and a pair of shorts from Macy's online. Both were on sale. The men's polo shirt was a golf shirt by PGA Tour and the shorts were by Docker's. So, nothing out of the ordinary here.

I didn't receive an email from Macy's that they had received my order for almost 24 hours. I got it Friday afternoon.

I received an email this morning, or fully 5 days after placing my order saying my order has shipped and I should expect it to arrive July 25th. (July 25th!!) The order is being shipped FedEx ground. A tracking number is provided. I clicked on the tracking number and there is no information. This leads me to believe it hasn't physically been shipped yet, only that a tracking number has been assigned to it.

Like a lot of people here on ER.COM I buy from Amazon.com. In fact, I'm a seller on Amazon.com as well. I know how important it is to get the orders into the pipeline and shipped out the door.

So how can it be that a major department store like Macy's can make an online order into a 12 day turnaround time?

My other data point is Kohl's stores. A couple years ago Amazon and Kohl's reached an agreement whereby Kohl's would be an official return agent for Amazon orders. This means instead of going through the process of shipping back some merchandise you want to return you can physically go to Kohl's store and return your Amazon order. I presume Kohl's did this because they are starving for customers and are hoping if someone brings their Amazon return there they will stay and browse the Kohl's merchandise.

My wife has done Amazon returns through Kohl's three times since Christmas. She reports that she rarely sees another person--customer or store employee--during her walk through the store to the return desk.

 

[aja8888]

So what's your question? LOL!

 

[MC Rider]

Shopping online is easier in a lot of cases. Especially when the nearest Waldo, Target, Kohls, or any big box is an hour away. Some things I want to see in person though, and maybe try on.

 

[Walt34]

Amazon rewrote "The Book" on how a lot of mail-order businesses must operate to remain competitive. Evidently Macy's didn't get the memo on that and will soon die if they don't turn that around and fast.

That reminds me of another once-major company: Kodak. They sat fat dumb and happy on their laurels because they were top in the field of film and ignored digital cameras (which a Kodak engineer invented). Digital ate not only their lunch, but them too.

 

[Aerides]

The shipping expectations and ball drops are what gets me. As a seller on amazon also, I know that an "order shipped" email is generated when the label is printed, but I do expect that means the seller (store, big small, whatevs) gets it in their shipper hands for a first scan within 24 hours. And if I'm getting that email in the morning, I expect it to move that same day.

I don't mind ground shipping, if I'm not paying for it. I do mind fedex slowpost stuff. Amazon setting the free-shipping expectation is the worst for others to compete with, especially considering what that actually costs.

 

[swakyaby]

I wanted to buy a book and knew our local Barnes and Noble could use the business with Amazon wiping out nearly every book retailer in the area. So I looked up the book in Barnes and Noble’s catalogue and saw it was “in stock” at our local store. I drove over that day and looked around the aisles. Not finding it, I asked customer service. A very friendly and enthusiastic employee searched exhaustively and lengthily for it. Disappointed, he returned and said that even though their computer lists the book as in stock, that someone must have misshelved it. He offered to order it for me. I said, no thank you, that I can order it myself.

I returned home and ordered it through Amazon at a 20% discount. Sigh.

 

[Sunset]

OP - B&M stores are failing because I've realized maybe I'm lazy. Maybe most folks are like me.
It's pretty easy online to compare, read 100 reviews, pick an item and have it on the front porch in a day or two.

Compared to drive to store, park somewhere, walk in, walk around store trying to find a widget, ask clerk who might know, finally find the widget, they have 1 type so no compare.
Find the cash registers and wait in line, buy it at full price as there are no coupons hanging around the cash register, and walk to the car, find scratch/dent on the car, drive home.

 

[COcheesehead]

I buy almost all my clothes, shoes, sporting equipment online. Ten years ago I would have said “impossible” you have to try it on, touch it, feel it. The world changed. Covid has hastened that process.
I try and buy local now where I can, but that is now down to restaurants, beer, coffee.
When we traveled we used to browse shops. Now we know where to get better deals so retail just doesn’t hold much value anymore.

 

[Sunset]

I buy almost all my clothes, shoes, sporting equipment online. Ten years ago I would have said “impossible” you have to try it on, touch it, feel it. The world changed. Covid has hastened that process.
I try and buy local now where I can, but that is now down to restaurants, beer, coffee.
When we traveled we used to browse shops. Now we know where to get better deals so retail just doesn’t hold much value anymore.

I'm still saying that about shoes, but of course the store only has 4 choices for me to try on ...

So I broke down and bought some Adida's online due to a good sale for $22.
They fit fine.

 

[COcheesehead]

I'm still saying that about shoes, but of course the store only has 4 choices for me to try on ...

So I broke down and bought some Adida's online due to a good sale for $22.
They fit fine.

Free shipping, free returns solved the shoe fit issues for me.

 

[njhowie]

OP - B&M stores are failing because I've realized maybe I'm lazy. Maybe most folks are like me.

Have you seen the movie Wall-E? There may have been some clairvoyance about the future of the planet.

 

[albireo13]

Just order on Amazon

Whats the problem?

 

[Midpack]

It’s pretty simple. Though what you describe is a symptom, not a cause.

Online shopping continues to grow, brick-n-mortar foot traffic continues to decline. Brick-n-mortar prices have fallen to match online prices, with slimmer margins.

Macy’s and others who are stuck with brick-n-mortar stores, associated expenses and the employees to staff them among other expenses have no chance against a competitor like Amazon. Amazon has far lower fixed costs, just distribution centers and fewer employees. Gig workers augment their core delivery team. Amazon’s almost unlimited inventory is held by others, at their expense.

The brick-n-mortar stores are trying to keep a foot in physical stores and online, that’s expensive. Brick-n-mortar stores can’t afford to keep the inventory they used to either, so longer turnaround is inevitable. “We don’t have your color-size-style, but we can order it for you” has become the norm at department and big box stores.

And showrooming is further killing off brick-n-mortar.

It’s a slow death spiral…

 

[COcheesehead]

What also seems wildly popular near us is resale shops. To the point where they specializing: women’s boutique, outdoor gear, records, furniture, etc. Anytime we pop in one, they are busy.

 

[zippy2020]

Interestingly, there are certain retail stores that are doing very well with Millennials/Gen Z - but they are focused on the "what's hot right now" and operate with a small footprint and a focused inventory. These are fashions and items pushed by social media influencers.

Retail stores can no longer be 'all things to all people'. Shopping is no longer a family recreational activity. As many pointed out, we want our purchases as fast as possible, but rapid delivery fulfillment can offset the "can I have it right now" factor.

Commercial RE was charging higher and higher rents; even as big, medium, and small retail was starting to struggle with labor, insurance, and transportation costs. I recall even during the pandemic and lockdown period, a couple of well-known restaurants went out of business because their landlords raised their rents, despite the fact the kitchens had been forced to shut down. Now, of course, commercial rents have fallen quite steeply in many places.

As a consumer, even though I have plenty of discretionary income and time, why do I want to drive around doing errands for hours? Easier to order most things on-line, then once or twice a week, pop into just a few stores for items I know they will have, then take the opportunity to eat lunch or dinner out (which is my favorite hobby, LOL).

I'm a long-time catalog/mail order shopper. But even some of those companies are struggling. The survivors are the ones who have a focused marketing and tech-savvy set-up. There are several companies I have dealt with for decades, but their marketing is non-existent and their websites suck.

One of the great "retro success" stories in retail is Pabst Blue Ribbon beer. I think this is hysterical, since my mother drank this stuff (before she graduated to straight vodka) in the '50's, and it's not exactly a great beer. But it's a hipster success - one of the hottest restaurants in town makes "Pabst Blue Ribbon Chili".

This is how it happened - no need for brick and mortar or traditional PR: https://www.huffpost.com/entry/pbr-coolness-study_n_5399109#:~:text=In%20the%20early%202000s%2C%20PBR's,blue%2Dcollar%20associations%20and%20low

 

[COcheesehead]

I think the PBR fad is over. At least in Colorado. Seltzers, sours, pet nats, local craft beer seems to be the biggest hit.

 

[ksr]

I’ve been an online shopper for years and much prefer it to B&M shopping. But one growing problem, at least in this area, are the porch pirates. When I have a package coming, I monitor the tracking like a hawk and grab that package within moments of delivery. I wonder sometimes if that will affect the popularity of online shopping.

 

[COcheesehead]

I’ve been an online shopper for years and much prefer it to B&M shopping. But one growing problem, at least in this area, are the porch pirates. When I have a package coming, I monitor the tracking like a hawk and grab that package within moments of delivery. I wonder sometimes if that will affect the popularity of online shopping.

FedEx allows you to reroute for free to an FedEx store. UPS charges me $20 a year, but I can reroute to a UPS store. If a package requires a signature, the store accepts it. Amazon will ship to a locker. I no longer worry about theft or waiting to sign for anything.

 

[Qs Laptop]

Just order on Amazon

Whats the problem?

I looked high and low for a polyester/spandex blend moisture wicking golf polo shirt in a particular color scheme on Amazon and didn't even get close. That's when I tried Macy's.

They had the PGA Tour brand on sale for $19.99, regularly $49.99.

Macy's had what I wanted at a great price, but twelve days from order date to delivery date? That's unacceptable.

In the past I have used Amazon's Prime "try before you buy" program where you order clothes and you have 7 days to try them on, return the ones you don't want (if any) and only get invoiced at the end of those 7 days for the ones you keep. This is a fabulous shopping tool. Last winter I ordered five pairs of pants and ended up keeping three of them, returning two pair. This spring I ordered four pairs of shorts ended up keeping two of them, returning two pair.

 

[W2R]

I buy almost all my clothes, shoes, sporting equipment online. Ten years ago I would have said “impossible” you have to try it on, touch it, feel it. The world changed.

+1

I haven't bought any clothing, shoes, or much of anything else in a bricks'n'mortar store in this century. I used to do that back in the 1990's.

Amazon's "try before you buy" option is nice, but I have never once had to actually return something due to poor fit or it looking weird. I know that if I get Teva sandals in an 8.5M, they will fit perfectly and feel great, for example.

Now that Louisiana won't renew my driver's license (due to my aging vision), it's really nice to know that I can buy things without having to be driven across town to a store to look at them and try them on. I can order online instead, no driving necessary. This change in how we buy things, has happened just in time for people my age (75).

 

[Ronstar]

I’ve been having problems finding things I need in brick and mortar stores. So I dig out my phone in the store and order from Amazon.

But not finding things in the stores is starting to make me question why to go to the store in the first place.

 

[harley]

I looked high and low for a polyester/spandex blend moisture wicking golf polo shirt in a particular color scheme on Amazon and didn't even get close. That's when I tried Macy's.

They had the PGA Tour brand on sale for $19.99, regularly $49.99.

Macy's had what I wanted at a great price, but twelve days from order date to delivery date? That's unacceptable.

They had to have time to order it from Amazon, repackage it, and send it to you.

 

[Koolau]

Join me on a nostalgic trip back to the '50s.

When I was a boy, our town was "the hub" for about 5 counties servicing the mail-order business of (let me see if I can remember them all) Sears-Roebuck, Montgomery-Ward, JC Pennys. Maybe I've forgotten one. In any case, one could order from the catalog, pick up at the store, return to the store, probably see the item (and purchase direct) at the store. They were department stores and had everything.

In addition we had the 5 and 10 cent stores like SS Kresge, FW Woolworth and others.

There must have been 4 or 5 independent department stores as well.

Finally, there were "specialty" shops (high fashion attire for women, haberdashery shop, "w*rk" wear for men, shoe stores on every corner, etc.

From that to "most?" (many?) retail sales on line now - all in a single life time. What these eyes have seen in such a short time. Not all good and not all bad - but never to be the same as it was.

Returning you now.

 

[Time2]

I’ve been an online shopper for years and much prefer it to B&M shopping. But one growing problem, at least in this area, are the porch pirates. When I have a package coming, I monitor the tracking like a hawk and grab that package within moments of delivery. I wonder sometimes if that will affect the popularity of online shopping.

I see Amazon, now giving me the option to pick up my order at a location about 3 miles from my house. I didn't understand, and wondered do they really have a warehouse near me? No, they ship to a local storage facility and you can pick it up there. The rep at the storage facility told me this helps avoid porch pirates. So far, porch piracy is not a problem at my house.
Fingers crossed!

 

[athena53]

I wanted to buy a book and knew our local Barnes and Noble could use the business with Amazon wiping out nearly every book retailer in the area. So I looked up the book in Barnes and Noble’s catalogue and saw it was “in stock” at our local store. I drove over that day and looked around the aisles. Not finding it, I asked customer service. A very friendly and enthusiastic employee searched exhaustively and lengthily for it. Disappointed, he returned and said that even though their computer lists the book as in stock, that someone must have misshelved it. He offered to order it for me. I said, no thank you, that I can order it myself.

I returned home and ordered it through Amazon at a 20% discount. Sigh.

I've used order on-line, in-store pickup in local retailers, which pretty much guarantees you'll get it and saves wandering the aisles. Like you, I wanted a particular book last week and checked 3 local B&Ns on-line. Not in stock, not available for pickup, could order on-line. So...you have it in a warehouse someplace but you're not willing to include it in your next shipment of books to stores in my area. OK. I had a friend with Amazon Prime get it and will reimburse him.

I agree with Zippy2020- the "what's hot now" stores seem to be OK. What I don't like about the brick and mortar stores is that they've gone in the same direction. I remember trying to replace the protective case for a 2-year old iPhone. Both Target and Best Buy had infinite selections of cases for the latest and greatest- sparkly, cartoony, Otters (my preferred)... none for mine.

I try to avoid Amazon and order from vendors directly but I do a lot on-line.