When the reality of consumerism hits, it is obvious that online shopping has climbed to the top of the bracket. With conveniences of overnight shipping and avoiding crowds, mortar and brick shops are steadily feeling the hit. There is no need to bother with pushy sales staff, hours of operation when you can hang at home and surf the web in your pajamas. Just recently, Macy’s has announced a cut in staff members and store locations. According to NPR, they are cutting up to 4,800 jobs and closing up to 40 stores by September. The holiday season of 2015 showed less than promising results and the competition between retail and online shopping might also tell us a little bit more about the future of our society.
Retailers no longer hold the position as the ring leader; consumers are calling the shots and deciding how and when they want to shop. Although Macy’s has taken a huge hit, The United States isn’t the only country affected by the shift in consumer preferences. Canada and the United Kingdom also share the pain. According to Post & Parcel, “Total UK retail spending grew 4% year-on-year over the Christmas period, according to the latest data from Barclaycard (UK credit card). But this growth was driven entirely by online shopping, which saw the strongest year-on-year increase since April 2012, jumping 17.9%”. Canadian retail shops also share their experiences. “We’ve seen a number of players, including Target, Sony, and Mexx, pull out of Canada due to poor sales, poor execution or unsustainable cost structures,” says Andrea Stars in the Globe and Mail. Execution seems to play a big role in just about any idea and business models need to be aware of the changes that have headed their way.
Revisiting the frenzy of Macy’s sudden cuts, fortunately, they are thinking ahead. “Our eye is on a long-term vision of Macy’s Inc as a dynamic retailer that serves existing customers and acquires new ones through innovative approaches,” states Terry Lundgren, chief executive at Macy’s Inc. Just as any stump in life, change allows for growth. The drop that is seen in in-store consumerism forces companies to think on their feet for the next move.
According to NPR, “It purchased upscale beauty brand Bluemercury last year and made its first foray into discount stores under Macy’s Backstage to go head-to-head with T.J. Maxx.” Although online shopping is a huge threat, companies are also chasing after different options for growth.
These cuts and changes are unfortunate for employees, but it’s giving benefits to others. For example, different banks will gain business as they focus on helping former employees convert their retirement and savings accounts.
Whether it’s a retail shop competing with the online shopping industry or an adolescent figuring out the next move in life, the changes will always be a constant. What we really need to consider is how our lives will be affected with these changes. The things that online shopping has to offer can truly change our culture and way of living. Maybe one will go on a binge and purchase everything they see or maybe one will make their money stretch further as sales are easier to find. There are sides to every equation and as the online market grows, our society will show for it.
