It is no surprise that digital sales are growing whilst traditional physical store sales are declining. In a recent interview Scott Friend, Managing Director at Bain Capital Ventures has explored the reasons behind this.
Major retails such as Walmart have sought to expand their digital business whilst their store businesses have declined. Friend argues that if legacy retailers were to start again now, many would opt for less stores or smaller stores in order to focus their efforts on the growing online market. However, given that businesses are now tied into their existing stores, it is not as easy as simply closing them down.
Many new businesses are launching online first and then deciding whether to venture into the traditional store market, with many opting not to. This is clearly an advantageous position over those who are trying to move from store to online.
Friend notes that not all traditional retailers will make it but many can with the right people and resource behind their online efforts.
For new entrants to the retail market, opening a business has never been easier with company’s having direct access to an unlimited number of consumers.
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