It has happened. For the first time, consumers are purchasing more on line than in stores. Even Black Friday 2016 with its emphasis on traditional shopping saw more people buying on line than in stores (44% compared to 40%). Mobile phone sales on Cyber Monday, at $1.07 Billion, were up 34% over last year, and Cyber Monday sales exceeded Black Friday’s sales according to Adobe Digital. Personally, I would rather chew off my right pinkie than venture to a mall on Black Friday, but I did shop online taking me two minutes, without moving from my desk.
The traditional consumer shopping world is changing at light speed, and this dramatic sea change is turning shopping malls inside out, literally and figuratively. In the process, Amazon has eaten the collective lunches of Macy’s, Penny’s, Kohl’s, and even Wal-Mart.
By way of example, Amazon offers a purchasing experience that makes use by smart phone an obvious choice for Millennials who must be served if businesses are to survive the next two decades. On line price shopping is quick and incredibly convenient; price comparisons are easy; customer service is superb; and such things as Amazon Prime are eliminating shipping costs and speeding delivery. Returns are easy, requiring only some scotch tape and a stop at a UPS drop box. What’s not to like in this age of little spare time?
Consequently, brick and mortar stores are in serious jeopardy and are like deer in headlights, reminiscent of companies such as Blockbuster, Kodak, and Xerox, which fell prey to disruptive technologies, products, and trends. Only time will tell if traditional stores will survive, but the smart money is not investing in malls these days.Continue reading…

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