Online shopping is experiencing a massive boom. One survey by UPS suggests that out of more than 5,000 shoppers surveyed online, over half (51 percent) said that they made their purchases online. It’s also worth noting that 44 percent of smartphone users bought merchandise online according to data presented by the Wall Street Journal.

1. fd
[INSERT IMAGE HERE][INSERT IMAGE HERE]
Livelong Digital
6 Jackaroo Street, Melbourne, VIC 3754
0458 046 739
On The Future Of
Brick-And-Mortar
Shopping

2. Online shopping is experiencing a massive boom. One survey by UPS suggests that out of
more than 5,000 shoppers surveyed online, over half (51 percent) said that they made
their purchases online. It’s also worth noting that 44 percent of smartphone users bought
merchandise online according to data presented by the Wall Street Journal.
These numbers make people wonder whether online retail outlets will eventually replace
brick-and-mortar shops. Is this likely?
The Real Story
According to Forbes contributor Tim Worstall, there will not be a takeover. Worstall notes
how retail spending is improving (albeit bit-by-bit when compared to online shopping),
and how it’s driving online shopping as well.
Experts point out that online shopping only has a small impact on sales in physical
shopping outlets. Barely 10 percent of retail sales are online. In the United States (US),
about 80 percent of roughly 1,200 shopping centres report good business health. Vacancy
rates aren’t even in double digit percentages. There is, however, a significant decline
from 2006 when 96 percent of American malls were ‘healthy’, according to data from
property firm CoStar Group.

3. Pessimism Still Exists
Online shopping is easier. People no longer have to drive to the store, choose and pack
their purchases and transport them home. One of the countries with the highest rate of
online shopping is the United Kingdom (UK). Data from UK-based retailer Shop Direct
shows that over 4 out of 5 Brits (roughly 95%) buy their goods online. Revenue from
online sales hit numbers close to £100 billion in 2013 alone.
It’s these numbers that fuel scepticism about the health of the retail outlets amongst
some analysts. Forrester Research estimates that online shopping will continue to grow by
increments of 9.1 percent until 2019. As a result, more physical shops (mainly in
shopping centres) are likely to close. For example, although most shopping centres in the
US are healthy, there is still an undeniable decline. Retail analyst Jan Kniffen, speaking to
CNBC, predicts that one-third of shopping centres in the US will shut down. Such
predictions come in the wake of major closures, such as the outlets that have been shut
down by Macy’s.
There is no way to accurately predict the future of shopping centres. But the rate at which
online shopping is growing is fuelling negative speculation about the future of our shops.

4. Sources:
http://time.com/money/4327632/shopping-malls-closing/
http://www.inc.com/erik-sherman/e-commerce-a-complete-replacement-for-stores-not-
by-a-long-shot.html
http://www.dailymail.co.uk/news/article-2722631/Online-shopping-20-years-It-started-
secure-purchase-Sting-album-95-British-people-buy-goods-internet-retailers.html
http://www.business.com/retail-and-restaurant/why-shopping-centers-will-soon-be-
obsolete/
http://www.forbes.com/sites/timworstall/2015/01/04/the-shopping-malls-really-are-being-
killed-by-online-shopping/#3a800a40183e
http://www.wsj.com/articles/survey-shows-rapid-growth-in-online-shopping-1465358582
http://www.livelongdigital.com.au/services/seo/local/