Online or Brick and Mortar Stores?

Discussion in 'General Trading Discussion' started by gracer, Mar 3, 2016.

  1. gracer

    gracer Senior Investor

    Joined:
    Apr 2015
    Posts:
    532
    Likes Received:
    0
    Shopping online is probably the most convenient way to buy goods right now. You don't have to go out of your house, face traffic along the way to your favorite shopping destination and spend minutes on queue just to pay for your chosen items. You just open your computer or gadget and it doesn't matter if you're wearing your pajamas or nothing at all because no one else is there to care about what you're wearing.

    With this in mind, do you think that brick and mortar stores are now in danger of losing market because of online retailers who also offer the same products they offer and sometimes the prices are even lower online because the retailers are not spending money for rent which is also one factor in the higher pricing of goods in physical stores? What do you think is the future of digital and physical businesses, which will flourish and which will fall down?
     
  2. crimsonghost747

    crimsonghost747 Senior Investor

    Joined:
    Mar 2014
    Posts:
    1,722
    Likes Received:
    6
    When it comes to things like clothes I prefer to buy them from a store where I can try them on. Same thing for groceries etc. I want to go there and pick up what I feel like picking up instead of ordering online. But for all the other stuff? Books, technology, furniture etc. I'm happy ordering all of that online and I almost always do since it's faster and easier.
     
  3. Rainman

    Rainman Senior Investor

    Joined:
    Jun 2014
    Posts:
    1,587
    Likes Received:
    4
    Many brick and mortar stores now have some presence on the internet and online stores are also thinking of opening some brick and mortar outlets which will function both as warehouses and a place where their customers can buy whatever they want. There'll be no winners or losers in the end I believe because all stores will have the option of either buying what you want online or in their brick and mortar stores.
     
  4. Corzhens

    Corzhens Senior Investor

    Joined:
    May 2015
    Posts:
    933
    Likes Received:
    0
    I agree that online stores are going to replace the traditional stores. In the 1990s, no one would think that deliveries will be this popular. Now, all we do is pick up the phone and order food to be delivered to your door. Same with online stores which hinge on delivery services so the consumer just clicks on the website and pay with the credit card. Some other online stores are on a COD basis like the one where we purchase garden tools from. Maybe 10 years from now, life would be all about deliveries from online stores.
     
  5. pwarbi

    pwarbi Senior Investor

    Joined:
    May 2015
    Posts:
    1,028
    Likes Received:
    5
    While I also think that the online stores are going to eventually replace the more traditional brick and mortar stores in the future, I still think that some time off yet.

    Even now there are people that won't buy online, only face to face and also dint forget that Amazon, probably THE biggest online store as decided to open up physical stores in certain parts of the world, so they're not dead just yet.
     
  6. Alex

    Alex Senior Investor

    Joined:
    Apr 2015
    Posts:
    634
    Likes Received:
    3
    There are a small sector of the population that don't have a computer or shop online, that don't have cards and all these people do shop in brick and mortar stores. I have seen then and they don't want to change, and it's not only the older generation, but some younger ones who don't have access to computers, and don't qualify for cards so they can't shop online (you can't use pre-paid cards for some places to shop online).

    I see these places becoming scarce with less choice, and more expensive if you consider online discounts. Most stores will have a balance of the two, but I think brick and mortar stores will be limited to larger areas as they used to be or in retail parks where it is cheaper.
     
  7. My401K

    My401K Well-Known Member

    Joined:
    Dec 2014
    Posts:
    221
    Likes Received:
    3
    I think finally the vision that was started with Amazon is being realized. Many people may not know this but in the United States, Amazon has started to utilize the USPS for delivery. Since last November this has included package delivery on Sundays in many larger populated areas. This is a perk of being an Amazon Prime member. The Post office reported that they have already had an increase of volume of more then 30% because of this. It is still growing.

    In this region we have also saw many major big box stores close. Sears and Macy's were always anchor stores in the malls. While some of the smaller franchised stores have come and gone, the trend these days seems to be very specialized niche stores filling the gaps left by the widely known brand name stores. The success of the new ventures will depend on many things, including web presence. Like it or not the online shopping is not only growing but it is here to stay. It is indirectly feeding other industries, like the post office, that have been struggling. Catalogs are huge these days as far as advertising goes.

    I think as time goes on we will see many more independent store become brick and mortar trying to build up online status, and more of the larger old name store thinning out physical locations. You can bet that JC Penney's and Sears probably regret getting away from the catalog sales they once pushed so hard.

    I just read that one of the smaller malls here has decided to revamp and sold part of the parking lot area to a home developer. They want to create a combination shopping living destination, that to me sounds a lot like Agenda 21. Not that I am knocking that, we have Agenda 21 housing around the University Campus and it seems to be very successful. It is sort of like the neighborhoods of days gone by except they are covered and very close to your living area. With people working like they do this is not such a bad concept.
     
  8. SteakTartare

    SteakTartare Senior Investor

    Joined:
    Mar 2014
    Posts:
    857
    Likes Received:
    11
    Unless it is groceries or something I need right away, I prefer online shopping. The prices are comparable or better than brick'n'mortars, it is quicker, easier, and doesn't involve the crowds, moronic individuals, etc.

    To answer the primary question, there are indeed signs that physical stores are contracting. And it isn't just the markets that were already hit by the shift to Internet content. The market is simply responding to the shift in consumer's tastes.
     
  9. petesede

    petesede Guest

    Joined:
    Dec 2014
    Posts:
    991
    Likes Received:
    2
    I think this has been sorted out a decade ago. The amount of stores that are going to close just because of online competition is over. Things that people don´t like to buy online will have stores, and things people only buy online will not have stores. I don´t think there is anything tech-wise on the horizon that would suddenly cause a certain type of store to shut down that hasn´t shut down already.

    I do think 3D printers are something to keep an eye on though. If they get cheap enough to become a normal household appliance, they could affect some types of shopping.
     
  10. Alex

    Alex Senior Investor

    Joined:
    Apr 2015
    Posts:
    634
    Likes Received:
    3
    Maybe it will whittle down to stores only being in major towns and cities now as it used to be? Brick and mortar stores have to be profitable and many aren't, but some many be stuck with long leases so they will ride them out and use them as showrooms for the time being. I am sure once a lease is up they will close or move to a cheaper location.
     

Share This Page