NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) today released research report “Online Retailers Check Out Neighborhood Shopping Centers.”
While the rise of e-commerce has benefitted the industrial sector, its increasing share of total retail sales has had a crippling effect on bricks-and-mortar retail. A recent UPS survey of online shoppers found that for the first time in the study’s five- year history, on average more than half of the shoppers’ purchases were made online.
The future of the retail industry will not only be on the Web, but also in creating omni-channel offerings that integrate the online and bricks-and-mortar experience. While this has been going on for years as traditional retailers have expanded their online presence, the tables have turned as e-commerce outlets are now opening physical storefronts. This trend may indicate that there is still a place for bricks-and-mortar retail—albeit with a digital-age makeover.
Amazon has been at the forefront of e-retailers that are utilizing bricks-and-mortar integration. Recently, it opened a physical grocery store in Seattle. Based on recent articles, Amazon may be exploring other test grocery store locations. If these test stores are successful, we would expect others to follow. That may not be the only threat to the supermarket or grocery store. Millennials are visiting supermarkets less frequently than previous generations did. According to a report by the Food Marketing Institute and Nielsen Co., in 2016, 28% of millennials bought groceries online.
To view the report, please click here.
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