The destination of traditional retail due to the impact of e-commerce

Huge lines everywhere, people camping outside stores from the night before and crowds fighting for the same product, are some of the images we all know from Black Friday in America. However, it seems that the sales results in recent years and the new normal that we face in 2020, are beginning to tell us different stories.

In 2019, a record 189.6 million consumers bought in physical stores and on-line between Thanksgiving and Cyber Monday, 14% more compared to the same weekend in 2018. But, even with these general positive results, sales in physical stores fell 6.2% compared to the previous year. The reason: “There is no longer just one way to buy,” according to Brian Field, senior director global retail consulting firm at ShopperTrak. E-commerce, in addition to home delivery, offers the possibility of collecting orders in store, for those who prefer to avoid crowds and do not want to wait for the delivery time of the couriers.

Does this mean the end of retail traditional? Nothing further from reality. Physical stores will always offer us the experience of knowing the products and knowing exactly that what we choose is what we were looking for; that’s why 22% of US consumers bought as much on-line as in stores last Black Friday, and it is estimated that these consumers spent on average 25% more than those who bought through a single channel.

This year, despite the COVID-19 crisis and the uncertainty generated during the presidential elections, the first results of year-end sales in the United States indicate a possible recovery for the retail over the next few months. According to Adobe figures, only on Thanksgiving, the sales record was broken, with $ 5.1 billion dollars, which represents 21.5% more than in 2019. It is also important to note that, in states where there are currently more restrictions due to the pandemic, online shopping increased by 49%.

We are in a key time to understand how consumer habits will change. For him retail It will be important to evaluate the services they offer to their clients, as well as the role they will play in customer journey in the near future.