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Physical Retail Will Not Disappear, It Will Transform

Physical retail will not disappear, it will transform

Retailers dealt with an issue before the pandemic and it is called “retail apocalypse”, this concept talks how a massive amount of retailers had to close their stores around the United States and the world, due to the changes in how customers buy, and also with the rapid growth of online shopping. To have a greater understanding of the magnitude of challenge retailers were facing, it was shown that previous the arrival of the pandemic, in 2019 the United States had more stores close its doors compared to the number of store openings.

This year things don’t look so different, especially in the middle of a pandemic, that will force people to stay home and change the way they shop, thus generating the bankruptcy of companies. As Busines Insider points out, in this same market it’s estimated that in 2020 at least 6 thousand stores will close, although there could be as many as 12 thousand more closing since the pandemic has hit sales and physical traffic that they received in the different locations, this continues to occur amid the new normality since there are new outbreaks in certain cities which leads certain businesses to close the curtains definitively.

M-commerce is the key

Everyone knows that e-commerce is a constantly growing part of the larger retail and commerce landscape, but did you know that mobile commerce is growing at an even faster rate? Given the growing number of smartphone and tablet users, this is understandable, but there are still a lot of e-commerce retailers out there that haven’t been keeping up with the times and are still serving up unoptimized, unresponsive online stores to mobile users that can very easily drive mobile customers away.

Failing to provide a mobile-friendly shopping experience might just be putting you at a disadvantage, given the growing popularity of mobile Internet and mobile shopping, not to mention the multi-screen world we live in today.

Mobile Commerce Sales Are Increasing

According to Internet Retailer, retail sales via smartphones in the United States increased by 101% in the first quarter of 2014, compared to the same period in 2013. In addition, the average order value on purchases made by smartphones increased 12% and conversion rates increased by 29%. What’s more, Forrester, a research firm, predicts that 29% of all e-commerce transactions in the United States in 2014 will be mobile commerce transactions.

As far as actual transaction amounts are concerned, the numbers are also quite impressive: PayPal processed $27 billion worth of mobile transactions in 2013, while Alipay exceeded even that, claiming that it had processed $150 billion worth of mobile transactions over the same period of time.

Mobile Helps Even Traditional Retail Sales

Even if you run a traditional brick-and-mortar retail store, you can still benefit from smartphones and having some sort of mobile-friendly retail presence, whether it’s in the form of a responsive website or native app. For instance, research by Latitude from 2012 showed that a vast majority of respondents – 88% – agreed that having a mobile device that could provide real-time information actually made them more spontaneous when shopping.

A report from xAd and Telmetrics showed that purchase intent was high for both tablet and smartphone users, with 60% and 53% of users respectively making purchases related to their online activity. What’s most interesting about this, though, is that more than half – 53% – of all mobile users, and 74% of all smartphone users, were found to be making their purchases offline or in-store.

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