Is Brick and Mortar Retail Dead?
A recent article by the Associated Press highlighted how retail firms are shifting strategies. What traditionally worked in a retail only format has gone the wayside as brick and mortar retail firms increasingly see their revenue coming from online sales. The article cited statistics that are interesting such as online and mail order sales growing by 11 percent in October form a year earlier, versus retail sales (brick and mortar) which had less than a 2 percent growth for the same period.
The key point of the article is that retail business models are changing and in order to stay competitive, retail firms must use a multi-channel approach which leverages sales / revenue across platforms (brick and mortar, online, events, etc.). I think this is just one of the many changes that are happening within today’s channels. Particularly in the copier space, channel partners have been reluctant to undertake serious business model transformation. Rather they stick with the tried and true.
In today’s market, this is a risk proposition. Regardless of the channel you play in, and what your strategy is, constant business model innovation is a key to remaining competitive!