The growth of online shopping will one day lead to all shops in towns and cities closing. Do you agree or disagree?
The growth rates of online shopping platforms have reached
such
a point in recent times that the future of existing stores
in the city has become highly debatable. The question of how these stores
can survive in this
competition and implement methods to differentiate themselves in the eyes of customers
is observed as a significant concern. Factors such
as high rents for existing stores
, limited variety of available goods, and transportation challenges significantly weaken their position. Throughout this
article, I will convey discussions on the subject and share examples regarding the details of the issue.
Firstly
, if existing stores
want to generate high revenue, their locations must be excellent to reach this
goal. As a consequence
of this
location, they inevitably have to face high rental costs
, which must be reflected in the prices of the products. In many cases, store rent accounts for 50% of the total profit, ultimately resulting in customers
facing higher costs
compared to online shopping. On the online shopping side, the use of warehouses is more cost-effective, and solutions with relatively lower storage costs
can be implemented.
Moreover
, since the customer does not require physical browsing or visual experiences, a much larger amount of inventory can be placed in the same square meter area. As a result
, the per-unit storage costs
decrease. Additionally
, looking at the employee profile, opting for a warehouse worker instead
of a highly paid
staff member can make prices even more competitive. Add a hyphen
highly-paid
Although
there are still controversial aspects to this
issue, it is a reality that it reduces prices when viewed from the customer's perspective. Existing stores
must develop solutions that can attract customers
to the store and encourage higher-value purchases to overcome this
challenge.
In conclusion, stores
are at a delicate juncture between life and death. They must either continue their current processes and hope for a different outcome or take action to change their fate. The future is approaching so rapidly that they may need to move faster than they think. Currently, they should focus on bringing customers
to the forefront, brainstorming what they can do, and swiftly implementing cost-reducing measures to stay competitive in this
market.Submitted by salihzekikoni on
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