Retail brick and mortar need to switch tactics if they are going to survive. Many large corporate chains and independent department stores are closing down as more people are turning to online shopping. Sears and Toys-R-Us are the latest casualties that have closed or have filed for Chapter 11 (bankruptcy protection). Disturbing sad trend facing retailers trying to stay competitive in difficult economic times. How does this ongoing trend affect today’s shoppers…and where do we go to spend our hard-earned cash?
Are malls doomed without a large anchor store?
Remember Eaton’s, Woolworths, Sears, K-Mart and Macy’s? Some of the defunct department store chains were forced to shut down or scale back in expansion. These large anchor mall tenants helped drive traffic to help small businesses. Not anymore. Shopping malls will have to adapt and switch tactics to survive. Some upscale malls like Southgate Mall have modernized to serve a certain niche: delivering excellent customer and guest services, exclusive perks and special events. Is that enough to attract people? Some malls that are anchored with movie cinemas, entertainment, amusement centers and restaurants will thrive, but for how long? Some malls situated in high-density areas or near a train station will get some foot traffic. But don’t forget, retailers still need to pay for their employees’ salaries and the leased space. If their stock doesn’t move during peak sales periods, then they will suffer a similar fate. It’s a shame, but some of the older malls are nothing more than a hangout for rowdy junior and high school students.
Does anyone shop downtown anymore?
During my walk in the downtown mall (City Center), I was startled to find a half dozen retail stores closing down or offering a liquidation sale. Not unusual. Despite a new food court and some shuffling of new stores, it looks pretty dismal. Downtown retailers cater to shoppers who work downtown and only shop during their lunch hour. Open to business executives or employees who are mostly window shoppers rather than serious avid shoppers. I’m not surprised there are reduced shopping hours! Even a large department store like Hudson’s Bay can’t help drive traffic downtown. Besides, they are too expensive for the average bargain shopper. Why would I go all the way downtown to shop and go through the expense and hassle of finding parking? Most people will head to a neighbouring strip plaza or suburban mall during the evenings or weekends. Plentiful of free parking and you don’t have to travel as far either.
Shopping for something intangible can be hard
Let’s face it…older generation or non-tech-savvy shoppers don’t care about cyberspace or anything else so intangible. Can you blame them? 80% of my shopping is online through an eCommerce website. Is it always a pleasant experience? No, not always. Trying to find the right fit and size for shoes can be challenging. Shopping for eyeglasses is not easy either. However, there are flexible options for shoppers: store pickup, and fast free shipping backed by a decent refund/exchange policy. I had to return a few items that I ordered online and it was mostly painless. Shoppers need to shop around and make sure what they order online matches their expectations. Unless you physically touch the material and give it a spin, there is that unknown factor. Who wants to be stuck with a lemon that is not exactly as advertised online?
Online shopping is here to stay
I recall the early days when shopping online was a cumbersome, slow and frustrating process. No more. Shopping online is becoming the norm for Millennials, Generation X-ers and Y-ers. Many retail chain stores like Toys-R-Us are scaling back or selling off their divisions. How do you compete with online retailers who have less overhead costs and more purchasing power? You can’t beat the price and selection of large online retailers like Amazon marketplace, Walmart, Costco, Wayfair, Overstock and eBay. This month, I ordered a few purchases online including eyeglasses from Clearly and an affordable loveseat from Wayfair. Just add your items to your virtual shopping cart in the comfort of your easy chair. It can’t get much easier! Did I mention they offer free shipping? No wonder the brick-and-mortar retailers are sounding the alarm. Time to use up your Toys-R-Us gift card before it is too late.
