Ecommerce will continue to outstrip brick and mortar in 2012
Consumers are expected to shop online more in 2012, preferring the peace and quiet of their own living room to the hustle and bustle of brick-and-mortar stores.
According to a survey of 94 retail brands, 63 percent of multichannel merchants anticipate a sharp increase in online sales through 2015. Conversely, fewer than 10 percent predict their online sales will decline during the same time frame.
"We find the number of retailers committed to stores as a major growth strategy declining and the need to do a good job integrating the customer experience across all channels more and more of an imperative," notes the report, which was conducted by Retail Systems Research.
By 2015, nearly half of retailers – 41 percent – will be earning between 10 and 24 percent of their sales through ecommerce, up from 19 percent as of 2011. The number of businesses earning between 25 and 74 percent of their sales online will undergo similar growth, jumping from 3 to 22 percent.
Conversely, retail merchants earning less than 10 percent of their sales online will decline from 68 percent in 2011 to 26 percent in 2015. It's clear that many retailers no longer perceive ecommerce as an added benefit – it's a necessity to maximize sales.
Simply shifting online isn't enough, either. The respondents that Retail Systems Research noted as being "winners" explained that keeping up with advances in technology is crucial to broadening sales reach. Over the next few years, that means going online, but there are always relevant technologies being developed. Through 2015 and beyond, retailers must consider how new platforms such as social networks and mobile commerce will affect their operations.
Other challenges will affect retailers as they shift gears from physical stores to online shops, including managing internet inventories, dealing with the ease of comparison shopping, cart abandonment and planning for uncertain customer demand.
Whatever the challenge, the future looks bright for the retail industry. The past two years have seen many merchants recover from the 2008 recession and according to the National Retail Federation, sales are positioned to continue to improve throughout this year.
