Consumers can hardly remember a time when they had to get up to change the channel on the television or find a pay phone when the car broke down. It’s hard to imagine that these forgotten inconveniences were prevalent only 20 years ago. Advancements in technology have paved the way for thousands of life-simplifying inventions.
Corner stores and butchers, vinyl records and camera film, bank tellers and check out clerks. All of these items and services are becoming obsolete. The pace of life continues to grow faster and faster and, for the typical consumer, that means daily tasks need to become more efficient. Most errands and activities can be done electronically now. Groceries and food can be ordered online and delivered, banking and bills can be handled via the Internet, and virtually all communication now takes place electronically.
There is another stage to this type of extinction: products and services that are just beginning to show signs of obsolescence. Nowhere is this more obvious, unstoppable or dramatic than the change that seems to be affecting America’s regional shopping Centers (RSC) or shopping malls, which seem to have a very uncertain future.
An RSC has 400,000 to 800,000 square feet of leasable space and contains at least two large department stores as well as a diversified selection of other shops. It is an inflexible capital investment that is financially supported through consumer purchases. Unfortunately, those consumers are turning to the Internet in increasing numbers.
The Census Bureau of the Department of Commerce announced on August 17th that the estimate of U.S. retail e-commerce sales for the second quarter of 2009 increased 2.2% from the first quarter of 2009 while total retail sales decreased 0.4%. Nine years ago E-commerce accounted for 0.6% of retail sales and today it accounts for 3.6%.
E-commerce sales are down approximately 4% since the beginning of the recession compared to retail sales, which declined over 10%. The impact on retail sales is exceptional and does not account for present and future impacts brought on by the development of new devices such as smart phones and kindle.
As daily tasks become increasingly convenient through virtual options, consumers become more comfortable with the idea of trying new things online. Twenty years ago no one could have imagined buying clothing without trying them on or purchasing products before having seen them. But web sites offering full product details, user manuals, look inside views of books, and free shipping for both ordering and returns provide an irresistible shopping experience for just about anyone.