Tuesday, December 1, 2009

The Perfect Storm: Online Sales Draining Mall Revenues In A Disastrous Economy

The younger “Digital Generation” has embraced all things online, which is now negatively affecting shopping centers, their tenants’ stores and employees. This is on top of the current nasty economy, which therefore has a double negative effect. It’s the Perfect Storm affecting shopping center property owners and their retail tenants and will exponentially expand if unchecked.
Mall retail tenants are now very effectively promoting their e-commerce websites inside the malls and then shipping numerous orders from central distribution warehouses outside the malls ….these are orders that were created by people who first browsed inside malls (using the stores as mere showrooms) and then left for home or office and ordered online elsewhere – this “Barn Burner” situation is further harm to malls and every local store and employee therein. This scenario is the “Online Sales Draining Malls” we refer to in our recent blog post with the chart showing how online orders have reached the 'flash point' where they are overtaking in-store purchasing at a rapidly accelerated rate.

Good News! Our turnkey solution has proven to increase participating store sales by 15% and profits by 58% with incremental (thus higher profit) orders we fulfill in-store and deliver to the customer within 30 to 45 minutes (instead of 3 to 10 days from off-premise warehouses). This benefits consumers, stores and shopping center owners by recapturing lost revenues and improving customer service. As well, it virtually eliminates the usual 30% return rate of regular online orders (i.e. not home, changed mind, etc.) which directly improves the retailer’s profits at the head office level. 

Please let us know how we can be of service to you.  Implementation of our Network is as "Easy As Plugging In A Toaster"

Best regards,

Gail Nichols,
Vice Chair

Email: GNichols@TheNowMall.com

No comments:

Post a Comment