After the collapse of HMV and Jessops, Blockbuster has become the latest retailer to admit that it is struggling. According to Guardian, the store will remain open but the administrator will be looking for buyers. It is estimated that 528 out of the 1,400 shops will be closed.
So what is causing all these tragedies? According to analyst Glyn Mummery, ‘Online retailing has caused a bloodbath in the electronics and entertainment markets for old-school retailers.’
So what is causing all these tragedies? According to analyst Glyn Mummery, ‘Online retailing has caused a bloodbath in the electronics and entertainment markets for old-school retailers..’
Indeed, Blockbuster fails to evolve with the market effectively. Let alone all those downloading activities, its rivals such as Lovefilm and Netflix are branding and promoting their online rental services vigorously, yet the Blockbuster’s image remains as bricks-and-mortars stores only, which you have to drive all the way there in a cold winter night to grab a DVD.
The key is to achieve a balance between bricks and clicks. For example, John Lewis has worked hard developing their online retailing sectors as well as maintaining their high standards in their bricks and mortar stores. They have seen a 44% increase in online sales this year, accounting 25%of their total Christmas sales.
“We call it a “bricks and clicks” story,” says Mr Street, managing director of John Lewis. “People may place orders online, but they still want to come to see and touch things and have a social experience.”
“We call it a “bricks and clicks” story,” says Mr Street, managing director of John Lewis. “People may place orders online, but they still want to come to see and touch things and have a social experience.”
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| Well presented, clear and consistent site navigation (John Lewis online store). |
But the big question is - how many more retailers are struggling out there? One thing we can be certain of is that there are big business opportunities in the online world. If you are looking to start or even expand your online businesses, 3PL will be more than happy to give professional advice.
3P Logistics
centres upon a simple belief that “every business
irrespective of its profile should have access to a quality and affordable
supply chain service provider”. Since initial go-live in 2006 we
are now firmly established itself as one of the UK`s leading providers
of ecommerce and order fulfilment services to online retailers
trading via the various channels
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