The Future of Traditional Retailing

Future retailing in the traditional retail industry can be explained as a vaguely business that sells goods and services to end customers. This particular business area is very important to the economy and annual sales are expected to reach 3 trillion dollars. Retailers are constantly struggling to find new and innovative ways to meet the needs of customers and the need to secure market share. There are many channels for retail.

Warren Buffett recently sold 90% of his Walmart shares as he expressed doubts about the future of the retail company. In fact, he believes that the traditional retail industry as a whole has a very tough future. Berkshire Hathaway, the holding company of Buffett, sold Wal-Mart shares worth $ 900 million in the previous quarter. Buffett's contribution to Wal-Mart is currently less than $ 100 million. Despite billions of dollars in e-commerce, Wal-Mart can not gain a large market share. Online sales of Wal-Mart in 2015 amounted to $ 13.7 billion, Amazon's online sales reached 107 billion dollars. According to the report, in 2016 alone, Amazon accounted for half of the growth of the e-commerce segment during the holiday season.

Online retail sales increased by 10.1% in 2016, but total retail sales increased by 4%, quadrupling. This trend may remind me of some similar past trends that the past trends such as the news industry that seems to be online may be their future. Today, the newspaper was in trouble, trying to find a profitable revenue model both offline and online. Does the retail industry follow a similar path in the future? According to Barbara Thau written for Forbes, there are other signs that a real store rather than an online store is the future of the retail industry. One is the conversion rate. People entering real stores will have a higher likelihood of purchasing products than those who access their websites. Another, and perhaps even more attractive, is that the retailer is purchasing too small an online retailer that is already competitive. This will hurt the future of online retailing