Anonymous asked in Local BusinessesOther - Local Businesses · 1 decade ago

Discuss how are high street stores are reacting to the threat from other online retailers?

E-Commerce question

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  • 1 decade ago
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    The competition between internet and High Street retailers has become so fierce that suppliers have been offering discounts to High Street stores in order to help them compete.

    The popularity of Internet shopping has had a devastating effect on traditional High Street shopping. Julian Richer, founder of electrical retailer Richer Sounds, calls the internet retailers “parasites” and is quoted as saying "The internet is having a massive negative impact on our industry.

    Electrical retailers are going bankrupt in their droves and we are surely entitled to fight — legally of course — for our survival.”

    He also points out that internet shoppers cannot expect the same on-site demonstration, immediate availability or after-sales support as they would get from a High Street shop (10). Many areas of retail apply well online, with notable exceptions such as clothing where many consumers prefer to try the clothes on.

    Some businesses will introduce up-front fees for advice:

    Some chains of travel agents have begun charging a consultancy fee before they will let customers look at brochures or give them any advice.

    This is because it was common for people to visit a travel agent and seek their expert advice, then go home and book the holiday online.

    This type of arrangement may extend to other businesses too - for example and electrical goods store, choosing the model they want and then going home to find the best price online and buy it there.

    This shows how worried bricks and mortar retailer are about the threat of online shopping, and it is a particular threat for mass produced goods where the goods will be identical no matter if they are bought on the High Street or online.

    However this is grossly unfair to consumers who have no intention of shopping online. In addition, it would not be feasible for many stores to implement this type of strategy – a customer will not pay to enter a bookstore- so the less popular shops will inevitably have to close as sales decline.

    Interesting subject, whatever happens and how stores choose to fight back - the face of shopping continues to change in leaps and bounds.

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