Wednesday, January 16, 2008

The On-line Phenomenon

What is the deciding factor that motivates a potential customer to either shop online or actually shop in a store? For many, the option of online purchasing is easier and less frustrating than fighting crowds and finding parking spots at the local mall. For others who don't have the convenience of a local mall to wander from store to store comparing merchandise, the internet offers an unlimited selection of products that can be compared with just the click of a mouse. So why isn't everyone shopping online?
Victoria's Secret has definitely made a name for itself in the lingerie department. Many women decide to shop in the store instead of online for several reasons. One of these reasons is that the employees in this store, as in most others, are trained to give all customers the special attention they deserve and help to create a comfortable and fun environment in which to shop. Spending more money focusing directly on store atmosphere has become a new competitive trend for retailers and has managed to counteract with the online shopping craze. Victoria'sSecret.com has also been a huge success, however, mainly due to the fact their loyal customers know their sizes and know the brand well enough that they no longer have to go in the store to try things on. It all comes down to convenience in this time crunched America that we live in.
Now for the question of what will happen to stores if online shopping continues to steadily increase...retailers will eventually have to close their weakest stores and only keep their most prosperous ones open. Then, in response, the stores that remain open will probably become more overwhelmed with returns from Internet orders or business will slow due to the scarcity of store locations. Eventually there will be a point where customers will rely most heavily on Internet shopping as opposed to in-store buying. When stores start to shut down due to low in-store profit and customers, those people who ordered merchandise over the Internet will not have a local store to take their returns to. Those once "repeat" customers will no longer be satisfied with the customer service of the store. The local stores may re-surface again because of the demand for in-store returns and personal service.