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newsletternewsletter 285
Where Did Internet Sales Go? Where Did Internet Sales Go? According to the Direct Marketing Association, “for the first time in a decade, catalog/Internet retails are seeing a slide in Internet sales as a percentage of total direct sales.” This is great news for many retailers, especially those who have no presence on the internet. Many smaller retailers have been fearing a complete internet takeover. With gas prices rising, the thought is that more and more customers were going to make most of their purchases through the internet. In 2006, 40% of total direct sales were attributed to internet sales. In 2007, 36% of total direct sales was attributed to internet sales. Why have internet sales stalled? According to the article, it’s the hike in postal rates. UPS and FEDEX have also increased their prices making online purchases less advantageous. Add to this, the crack down on collecting sales tax by many states. More and more states are going after companies that do not collect sales tax in their state even though they may have a presence in that state. If you need to purchase a television, camera, or other popular internet item, it is becoming increasingly difficult to find companies that will sell to you with FREE shipping charges and 0 tax charges. By the way, as we have stated many times within the newsletter, if you do purchase any online product tax free, it is your legal responsibility to pay that tax to your local state (if that state normally has a sales tax on the item you purchase). Let’s see by a show of hands, how many of you fulfill your legal obligation? Despite this optimism for retail stores who have no internet presence, one should understand that many consumers check the internet prior to walking into a store. If your store does not have a presence on the internet, you are losing sales. For example, someone looking for a specific camera, or pocketbook, or whatever, may search for that on the internet just looking for a local source. I understand that more than half of small retailers have no presence on the internet, nor do they have a desire to put resources into the internet. For a better education related to internet sales, go to the articles below: Where Did Internet Sales Go? http://www.dmnews.com/Where-did-Internet-sales-go/article/115838/ Online Sales Spike 19%. http://money.cnn.com/2007/05/14/news/economy/online_retailing/ Online Sales Lose Steam. http://www.nytimes.com/2007/06/17/technology/17ecom.html Are Stores Sustainable?
The International Council of Shopping Centers estimates that 5,770 stores will close in 2008 compared with 4,502 store closings in 2007. One reason, besides the economy, that may cause an overabundance of store closings is the over abundance of stores. Because the last decade has seen so many new store openings, beyond what is sustainable by the amount of customers, we should expect an overabundance of store closings just to bring us back to the mean. Certain areas of the country have more than 20 feet of shopping space per person. That’s considered an overabundance of space. What does this mean to a small business owner? If things are looking bad, part of the problem may just be an more competition. You have a choice. Close down your store, wait for the competition to shut down, or do those things to get more customers into your store (and hopefully out with more merchandise). Read the article at: http://www.ismretail.com/index.php?option=com_frontpage&Itemid=1 Search for Are stores sustainable. While you are on the site, you can get a FREE subscription to Integrated Solutions for Retailers. You can see an interesting article related to the science of retail space at: http://blog.cleveland.com/business/2007/05/study_ne_ohio_has_too_much_ret.html We Mean Business
In Episode #3, Gluten-free bakery owner Sandee opened her business to help people with food allergies, but now, she's the one who needs help. Her store is operating in the red, is run by teenagers who don't take their jobs seriously, has absolutely no décor and, technologically, it's as old-fashioned as it gets. When the team comes to Sandee's rescue, they're met with resistance at every turn. Bill forces Sandee to reveal the extent of her financial losses to her unsuspecting husband. Peter and Katie struggle to turn the tiny bakery into a huge moneymaker through improved design and critical technology. They just hope Sandee won't sabotage their work. I urge all newsletter readers, retail store owners and employees, and restaurant owners and employees to watch We Mean Business on A&E beginning every Saturday at 10 AM. If you missed any episodes, you can watch entire episodes online at: Look under Shows (you will have to click on more to see the entire list). Select We Mean Business. Select Watch Full Episodes Online! See complete summaries and more We Mean Business online videos at: http://www.dellmeansbusiness.com/ The show is sponsored by Dell, and pcAmerica and Dell do have a business relationship. pcAmerica will be featured as the P.O.S. software provider in 2 of the weekly episodes. Many of you have watched American Idol, The Apprentice, The Restaurant, and countless beauty and house makeover shows. We Mean Business is probably the first makeover show devoted towards helping small businesses. The weekly show is co-hosted by Apprentice winner, Bill Rancic. Other co-hosts are Katie Linendoll, the tech guru, and Peter Gurski, interior designer. The show will feature business owners confronting major challenges such as budget crunches, staff cuts, and design overhauls. Please don’t miss this week’s episode.
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“Recent
news of store closings spanning all segments of retail should come
as no surprise”
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