Bleak Friday

Summary

November 27 was the beginning of holiday shopping in America. Shoppers are especially aggressive during this day hunting for greatly discounted items. Regardless of the amount of craze during this time, the recession seems to have increased the growth of online retailing. This year's Black Friday was to be bricks and mortar retailing taking back the initiative. Online retailing or E-commerce, appeals to the consumers with several advantages. By reducing labour costs, they are able to have more discounted prices than bricks and mortar retailing. Online retailing also able to have an advantage by eliminating local sales tax and shipping usually comes free. Although online sales grew 13% in America, it only accounts for 6% in all retailing sales of America. With the growth of online retailing, some online retailers are beginning to sell groceries and other household necessities. The response to online retailing for conventional retailers is to increase their efforts online. In “multichannel” shopping, people can buy the items from the same retailer in different ways such as online or in shops. Conventional retailers are trying to change by giving shoppers an experience instead of the traditional. In the future, mobile phones may develop NFC, a technology that lets you scan items and learn more about them.

Connection

This article talks about a type of nonstore retailing on the rise. Internet retailing is a major type of retailing not mentioned in the textbook. A nonstore retailing operation is special in that it does not require a location to become successful. Because it does not require a location, it costs much less to operate by eliminating the expenses of rent and of market researching. Due to the reduction of so many costs such as labour, the prices of merchandise online are generally cheaper than those of conventional retailers. Internet also has many advantages such as saving time and the ability to compare products in little time. Online retailing is now a bigger part of our lives than other types of nonstore retailing.

Reflection

I think it is very fascinating how many retailers in America actually do not make profit throughout the year until the beginning of holiday shopping, Black Friday. What is even more remarkable is that although there is a huge growth of online retailing, it only accounts for a mere 6% in sales of all of America. Although internet retailing does not seem to be that major when included in all of retailing, many brick and mortar retailers are still taking action to try to regain the initiative to try to encourage the concept of touch and feel, something online retailers do not have. I think it is good that there is competition between internet retailing and conventional retailing and we consumers will be able to benefit from it.