the coming economic revolution
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26-12-2014, 07:30 AM
the coming economic revolution
So internet sales are booming and brick and mortar stores are losing.

Are Walmart and Target etc. going the way newspapers went?

I remember most mornings in my life, putting coffee on, picking up the paper at the front door, and having a nice morning drinking coffee and perusing the paper.

Now I get up, put coffee on and head for the computer.

I used to spend days before Christmas going through stores and looking for gifts. Now I sit in front of my computer and order them after researching them thoroughly. Amazon gives me free 2 day shipping, and often I order in the afternoon and it's here the next day.

So, what are the businesses of the future? Where will the huge amount of money go once the big box stores are gone?

One obvious segment is delivery. Also packaging, hacker proofing, transfer of funds.

And? What do you think?

[Image: dobie.png]Science is the process we've designed to be responsible for generating our best guess as to what the fuck is going on. Girly Man
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26-12-2014, 07:57 AM
RE: the coming economic revolution
Quote:going the way newspapers went?

What way's that?
Newspapers are still around.

I think there will always be a demand for stores like Walmart.
You can't rush out to Amazon and get some nappies that you ran out of or a pack of smokes.
Yea it's here the next day but I could ride my bike to our equivalent of Walmart, buy something and get back home in less than an hour. I don't have to pay for shipping and I don't have to wait 1-2 business days.

There's also plenty of things people don't like to buy online. Cloths and shoes for example. And food.
Shopping is also a social event, especially shopping centers (malls). It's also more secure, or at least feels more secure. People also don't like to spend big money online. ie: Stereo system. It's risky, or perceived as risky, people would rather go to an actual store for that sort of thing because they have a physical location and physical people that they can see and touch that they can sue the shit out of.
A website might be hosted via proxy in the Middle East. You can't sue someone in a different country. But you can sue the shop just down the road from you.

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26-12-2014, 08:11 AM
RE: the coming economic revolution
Walmart has a good online presence and their original competitive strategy (a network of stores supported by advanced supply chain management) still is applicable to the new market (they could probably do same-day delivery if they wanted to/saw a need).

Where they may come a cropper is that Amazon's strategy of creating a network of diverse organisations, thus creating a broader market, could eat away at Walmart's advantage.

"I don't mind being wrong...it's a time I get to learn something new..."
Me.
N.B: I routinely make edits to posts to correct grammar or spelling, or to restate a point more clearly. I only notify edits if they materially change meaning.
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26-12-2014, 09:26 AM (This post was last modified: 26-12-2014 09:30 AM by Dom.)
RE: the coming economic revolution
(26-12-2014 07:57 AM)earmuffs Wrote:  
Quote:going the way newspapers went?

What way's that?
Newspapers are still around.

I think there will always be a demand for stores like Walmart.
You can't rush out to Amazon and get some nappies that you ran out of or a pack of smokes.
Yea it's here the next day but I could ride my bike to our equivalent of Walmart, buy something and get back home in less than an hour. I don't have to pay for shipping and I don't have to wait 1-2 business days.

There's also plenty of things people don't like to buy online. Cloths and shoes for example. And food.
Shopping is also a social event, especially shopping centers (malls). It's also more secure, or at least feels more secure. People also don't like to spend big money online. ie: Stereo system. It's risky, or perceived as risky, people would rather go to an actual store for that sort of thing because they have a physical location and physical people that they can see and touch that they can sue the shit out of.
A website might be hosted via proxy in the Middle East. You can't sue someone in a different country. But you can sue the shop just down the road from you.

Most newspapers in the US are gone out of print, some have a strong online presence still.

Yes, there will always be local convenience stores. But, you'll shop your groceries online if you like, delivered like your pizza. There will likely be lots of specialty shops in cities. Shopping brick and mortar will likely become a fun outing, combined with a restaurant visit and other social events.

I have bought my computers and furniture online, not small ticket items, and many I know do so too, because you get better info, selection, and you don't have to put up with pesky sales people. Yes, the existing businesses will expand their online presence, you can order online, pick up at the store if you like, or have it brought to your door.

Zappos sells shoes by the million, I should look to see if they sell stock. It's easy to find online shops that are operated from the US, dunno about your local availability, but here, foreign shops are not an issue. They can't compete with delivery speed.

You are wrong. While there will always be stores to cater to your sudden needs (convenience, drug store) and to your whimsy, much shopping has moved online.

[Image: dobie.png]Science is the process we've designed to be responsible for generating our best guess as to what the fuck is going on. Girly Man
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26-12-2014, 09:40 AM
RE: the coming economic revolution
the people who bought our house in October never walked thru it before writing the contract to purchase. Their agent did, but they didn't. A home is the single largest purchase/investment most people make. It was based on what they saw online and their agents comments.

I thought they were fools, actually first time buyers..., but I've been on the selling, buying, and the agent on a ton of houses.

Always walk thru it. If for nothing else to get a feel for the surrounding area.


"Life is a daring adventure or it is nothing"--Helen Keller
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26-12-2014, 10:04 AM
RE: the coming economic revolution
I agree with you on the need to see a house. When my wife and I were looking back in 2008, there were a bunch of houses that looked great online, but one we got there we hated them. You have to see a house and the neighborhood to know if it's the right house. At least, I do.

Regarding actual physical stores, I think some will survive. There are certain things that people need to see before they buy. Maybe not all people, but some. Clothes, cars, and even certain electronics I think will continue to have a physical store. There will certainly be fewer of them, but they will be there.

Shackle their minds when they're bent on the cross
When ignorance reigns, life is lost
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26-12-2014, 10:06 AM
RE: the coming economic revolution
I picked the architectural plans for the house I built online...

I already owned the land. I would have had to go see the land and the neighborhood.

[Image: dobie.png]Science is the process we've designed to be responsible for generating our best guess as to what the fuck is going on. Girly Man
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26-12-2014, 10:37 AM
RE: the coming economic revolution
(26-12-2014 10:06 AM)Dom Wrote:  I picked the architectural plans for the house I built online...

I already owned the land. I would have had to go see the land and the neighborhood.

I looked at one home we were considering for ourselves. I already knew the general area and neighborhood. The house was exactly what we wanted, 4 bed, 3 bath brick ranch, 3 car garage, level lot, inground pool, large screen porch, hardwood floors throughout. Stunk to the high heaven of cigarettes and little dogs who apparently weren't house trained. And since there was hardly any carpet, the smell was "in" the wood floors. Even the cement garage reeked.


"Life is a daring adventure or it is nothing"--Helen Keller
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26-12-2014, 10:39 AM
RE: the coming economic revolution
I've never bought anything on-line. So I guess I'll starve to death.

Weeping

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26-12-2014, 01:43 PM
RE: the coming economic revolution
I never said everyone would buy everything online. I am, however, saying that big box stores like Walmart and Target likely will reduce their brick and mortar presence - if the sales there are going down, the physical upkeep and cost of buildings won't be offset.

What I do think will happen, is that there will be a lot of local warehousing by the bigger players, so you can order online and have things delivered locally asap. Amazon has started to do that, and the rest will doubtlessly follow. So, instead of having a super-Walmart in town, there will be a delivery center and warehouse.

Malls are suffering big time - they'll be the first to go and many are closing already. They need to open as small store shopping and entertainment centers - where you go to hang for an afternoon, go window shopping and buy odd items from local sellers, watch a movie, have dinner, get a massage and a hair cut, with benches and plants and a vacation atmosphere. The days of rushing through crowded malls to grab sales items are pretty much over. They should aim to be one-day vacation spots.

Shopping is changing, just like some other segments of industry, like cable and satellite TV. Most TVs are internet ready now, so you can watch most things online while still sitting on your couch and looking at a big ass TV. For $35 you can buy one of the new antennas, which bring the local HD channels to your home flawlessly. No cable or satellite needed for TV. People will opt for one less bill.

Lots of changes coming. Makes me itch to jump in with something. But - I am going to stay retired this time, I keep retiring and changing my mind. Tongue

[Image: dobie.png]Science is the process we've designed to be responsible for generating our best guess as to what the fuck is going on. Girly Man
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