"Shares in retailer David Jones have slumped by 11 per cent after the
company warned of a full year profit drop of up to 40 per cent. David Jones shares were down 30 cents, or 11 per cent, at $2.43 on Wednesday.
DJ's - The retailer will expand its chain and also improve its online store. And Kathmandu shares were down 16.1 per cent, or 24 cents, at $1.25."
Retailers everywhere are seriously starting to feel the pinch of online shopping for those inclined to wait just a bit longer to receive their goods in the post from an online store that can shave, in some instances, up to 65% off the same goods purchased in a local Australian retail outlet.
And why not.
Why would anyone in their right mind spent up to 65% more for goods in the name of supporting who, the retailer, local jobs or goods manufacturers.
Even magazines are feeling the pinch with sales of the likes of FHM dropping from just over 26,000
to 20,000 in a matter of months. It was quoted as saying "FHM is a
picture magazine and the type of pictures here can be accessed for free
on the internet, so why pay for something that is free. And instead of
pictures in a magazine of 80 pages, try 80 million images for nothing. " Very hard to convince advertisers to stick around when the readers are not buying.
So, will there be a time in the future when retail outlets cease to exist; is it a distinct possibility that the legacy of ladies going out shopping together will be a thing of the past, what will they do...have online shopping parties at a friends house!
And it's not just in Australia this is effecting.
The headline reads "Small shops disappearing in Poland: Around 50,000 small retail units have closed down in the last two years, according to a new report."
Mary Portas: high streets destined to 'disappear forever'
Britain's high streets have reached a "crisis point" and will "disappear forever" as shopping destinations unless they are urgently regenerated, Mary Portas has warned.
And as for books, in June 2011, The Minister for Small Business (Australia) Mr Nick Sherry enraged book retailers by forecasting the imminent demise of bookstores stating they will all be closed in five years.
What do you think will happen to the likes of bookstores and general retailers?
I think the effects will be interesting to see in countries which are solely based on overseas shopping visits. One thing I've been thinking is how it will also have an effect on the postage services. Can they handle it at the rate of people purchasing?
ReplyDeleteWhat we're seeing, I think there is no turning back. Retail business is destined to shrink over time thanks to advancing technology and shifting of economy into cyberspace. Would retail shopping disappear? I think not. It will still exist in a much smaller and different form.