Shifts in purchasing from “brick and mortar” to e-commerce are undeniable, as the below article from Business Insider articulates. E-commerce sales are up by 15.5% from just a year ago. It predicts it will continue to take market share in the future.
This also factors in certain purchases that are not conducive to online purchase for various reasons. Those “resistant” sectors make up about 54% of total retail sales, so, for now, the growth of e-commerce is based on about 46% of available markets of conquest.
The resistant sectors include: new and used vehicle sales 21% (searching and pricing do not include purchasing), grocery and beverage purchases 12.6% (although some chains are taking a second pass at converting this sector with improved logistics methodology), gasoline sales 8%, and restaurant and bar purchases 12%.
Recently, it was announced that Sam’s Club, a division of Walmart, has made the decision to close 63 of its sales locations. It will convert about a dozen of those locations into—yes, you guessed it—internet sales warehouses, the USA Today inclusion below will give you the details.
It certainly looks like we can look forward to more closings of brick and mortar operations as we move into the future because of additional penetration. Although this process will be slow, it will be further fueled by retailers figuring out ways (and they will) to convert those “resistant” markets, over time.
What all this indicates is that businesses are finally catching up to the forward thinkers of the world. The company I purchase from started over 30-years ago with an e-commerce philosophy and is now one of the largest in the world with over $2 billion in annual revenue. Forward thinkers with amazing products and shopping options…just a few of the many reasons I love shopping there!