How online is killing stores

This chart is striking:

A bigger version is here and much more readable.

I think it is also possible to read too much into it. There are still stores in these industries that are surviving. But the lesson is: if your product can be made digital, then it gets harder to justify not buying it online.

Even if your product cannot be made digital, if the supply chain can be shrunk to an acceptible level, you may also be in trouble.

5 responses to “How online is killing stores

  1. No surprises here. (Although the stats ARE pretty staggering!)
    It was inevitable that business owners & household consumers would choose the quickest, cheapest method for these types of transactions;
    …much to the chagrin & demise of record* & bookstores in particular.
    (*funny how we still call them “record” stores….but that’s a whole other story.)

  2. Of course online is killing stores and until retail figures out that customer service is the only actual advantage they have – it won’t change.

  3. I have noticed that basically customer service is dead in this country so chances are the online stores will push the retail stores out of business eventually.

  4. I agree that the advantage retail stores have is the ability to see their customer, smile, and really sell their customer service. It’s odd most of them don’t seem to realize that. I have an online store and really try to provide personalization through answering gardening questions customers may have. I’m always thinking customer service.

    • smartpeopleiknow

      Becky, you raise a smart point. People often look at the costs of retail stores: they should focus more on the benefits they provide your business.