AS YOU READ THIS THINK ABOUT ALL THE LOANS EXPOSED TO COMMERCIAL REAL ESTATE, ALL THE INDOOR MALLS THAT ARE ALREADY DYING AND ALL THE EMPLOYEES THAT WILL / ARE LOSING THEIR JOBS.
Retail As We Know It Is Dying
Retail companies are in the middle of a seismic shift.
Younger shoppers are taking over the market, and they have a preference for online shopping. This means that older, brick-and-mortar sellers are struggling to keep up with online giants like Amazon.
The slide, from a company presentation at an analyst conference this week, shows the monthly buying frequency of US shoppers in hypermarkets — stores with both grocery and department sections — and online.
In just seven years, shoppers have shifted from making one monthly purchase on average online, to 6.5. Meanwhile, purchases at brick-and-mortar stores dropped from 7 visits to just under 5.
But even as traditional retailers adapt to the shift, they face the issue of added costs, which crunch profits.