Growth of Internet Sales Puts Crimp in Retail Store Traffic
Friday, 08 Aug 2014 07:49 AM
By Dan Weil
U.S. retailers are enduring a sharp drop in their store traffic, hit hard by the explosion of purchases on the Internet.
The situation is forcing retailers to curb their expansion of new stores, The Wall Street Journal reports.
"We're in a transformation where retailers are recognizing the Internet isn't going anywhere and to be competitive, you have to have a more compelling online presence and an efficient store base," Charles O'Shea, an analyst at Moody's Investors Service, tells the paper.
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Shopper visits to stores have dropped 5 percent or more from a year earlier in every month for the past two years, except this April, according to research firm ShopperTrak, The Journal reports.
30 to 40% of online sales of clothes are returned. Shoppers want to see, touch, and try on clothes before buying. Returning online purchases is a hassle. Omni-channel is here to stay, but most shoppers buy clothing in a bricks and mortar store. Don't expect bricks and mortar stores to disappear anytime soon.