Soho
Traditional Retailers Seeking Advice on Internet Merchants
25.01.2012 2226

Traditional Retailers Seeking Advice on Internet Merchants

Online stores are becoming a real hindrance to offline retail in developed markets. Large US retailer Target Corp. (the world's tenth largest retailer in terms of sales, which sells food, clothing, electronics, and interior items in hypermarkets) asked its suppliers to help him deal with the influx of buyers on the Internet, writes The Wall Street Journal. Buyers come to ordinary stores not for shopping, but to try on clothes or watch electronics, and then order these goods on the Internet at lower prices.

Target sent a letter to suppliers aleatherg them to design custom models for it that were not sold in competing stores. And if the release of special goods is not possible, the chain asks manufacturers to provide it with such discounts so that the goods on the hypermarket shelf cost no more than on the Internet. “We don’t want our stores to act as showrooms for online retailers that don’t make any investments to build stores,” says a letter signed by Target CEO Gregg Steinhafel. The company's management insists that mutually beneficial business development in an increasingly competitive environment is possible only with close partnerships between manufacturers and sellers.

Transforming offline stores into dressing rooms and showcases for online competitors is a big challenge for American retailers, from electronics retailer Best Buy to bookseller Barnes & Noble, but Target's tactics are unlikely to reverse the market trend, analysts say. In their opinion, exclusive goods and discounts from suppliers will not solve fundamental problems: the costs of online retailers for personnel and rent are significantly lower, and in many states taxes for online retail are lower.

For Russian retail, this problem is becoming increasingly important, said Andrei Shashkov, manager of Salomon, a store for tourism and outdoor activities. According to him, traditional retailers can lose up to 15% of turnover due to the fact that the buyer leaves them on the Internet. There is only one way out - to go online: create an online unit and sell goods there at a discount. Then the buyer will come, choose the product and buy it in your own online store.

Mid-price clothing dealers do not face serious competition from the Internet either. “If we talk about the medium plus price segment, then the critical mass of a female audience (from 30 years and above) buying clothes in online stores is still small,” says Olsen Rus’s Sales Director (Olsen brand) Lyudmila Klestova. Customers aged 30-40 years prefer to shop in offline stores.

Cannibalizing offline retail traffic with online stores is a long-term trend for the entire global market, agrees Denis Belov, the owner of the Boutique.ru project. And only for companies that are strictly focused on traditional sales, this becomes a real problem: most retailers seek to create their own Internet division. In Russia, the segment of online commerce is significantly behind in development from the markets of developed countries, and only a few online stores pose a real threat to offline merchants. “We sometimes have the opposite situation: people study the product on the Internet, and then look for it in ordinary stores. But gradually the audience of online retailers is developing, confidence in online purchases is growing, ”Belov commented. About this newspaper Vedomosti.
Online stores are becoming a real hindrance to offline retail in developed markets. Major US retailer Target Corp. (the tenth largest global retailer in terms of sales, which ...
5
1
Rating

Latest News

Dior presented "high" strappy sandals at Paris Fashion Week

Floral print and an endless number of shin straps are the new style of Dior shoes, showcased in the brand's spring-summer 2023 collection at Paris Fashion Week. Strappy sandals come with fine mesh knee socks in black and…
28.09.2022 65

Bottega Veneta set the shoe trends at Milan Fashion Week

One of the most interesting shoe collections that was shown at the recent Milan Fashion Week was the collection of the Italian luxury brand Bottega Veneta, part of the Kering Group. This is the second collection of the brand, created by the efforts of…
28.09.2022 70

Sales of clothing and footwear in Russia decreased in units, but increased in value

According to a study by the Check Index resource of the fiscal data operator OFD Platform (takes into account data from 1,1 million online cash registers in Russia), conducted at the request of RBC, the volume of clothing and footwear sales in Russia fell sharply in the spring of 2022, but ...
26.09.2022 206

Milan MICAM recorded 35 visitors

A major exhibition event was held in Milan, bringing together international professional exhibitions MICAM, Mipel, TheOneMilano and HOMI Fashion&Jewels. The total number of guests of the exhibition project, which took place from 18 to 20 September 2022 in…
26.09.2022 156

Furla presented a new clutch at Milan Fashion Week

Furla discovered the infringement of women's rights in the music scene and released a protest limited collection of bags. The collection is based on a new model of the Metropolis cross-body clutch bag…
25.09.2022 209
When you sign up, you will receive weekly news and articles about the shoe business on your e-mail.

To the beginning