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Is There An Unrelenting Collapse Of The Middle In Retail?

Posted by Harriet Schneider on Sep 24, 2019 10:00:00 AM

We thought this was an interesting article. Published by Forbes this month it talks about how it’s a virtual certainty that this year will end with physical stores sales not only being up year over year (again) but also, according to eMarketer, contributing more incremental sales growth than e-commerce.

Great news but for all retailers? Here's what Mitchell Chi, ICCG's General Manager - Americas, Enterprise Software has to say...

My thoughts about the collapse of the middle…

Did you know that 83% of retail shoppers enjoy socializing with friends centered on physical stores? Some retailers, when pressured to increase margins, focused on cutting wages, training and staff. They shifted spending to store displays, traditional advertising, and  a poor product assortment. These retailers deserved to die. Good riddance. 

But all of this makes the mid-market ripe for a low cost, “social retailer.” One like Primark. Great selection, well trained staff and FUN. My go to store for weekend, lay around the house clothing. 

Brick and Mortar Retail


It finally seems that most people have caught up to the fact that reports of retail’s death are greatly exaggerated. There is no retail apocalypse. Software is not eating retail. Brick-and-mortar stores are not going away. Traditional retailers are not all doomed. And Mexico is never paying for that wall.

In the United States it’s a virtual certainty that this year will end with physical stores sales not only being up year over year (again) but also, according to eMarketer, contributing more incremental sales growth than e-commerce. Despite all the doom and gloom stories, thousands of new stores will open, many coming from digitally-native brands that one eschewed a physical presence. Quite a few traditional retailers have seen a renaissance of sorts. Moreover brick-and-mortar stores’ role in driving online shopping is increasingly important and well documented.

Read More.

If you have questions, ICCG has answers. Schedule a complimentary consultation.


 

Topics: Retail, Infor M3, Retail Trends, Online Retail, CloudSuite Retail, Cloudsuite Fashion & Apparel, CloudSuite PLM

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