In today’s changing world, new products and services are introduced almost daily. Products that were used everyday just a short time ago are now obsolete. And the rest are in the process of becoming obsolete.
Getting up to change the channel, using carbon paper, creating documents on a typewriter: These are all once common tasks that no longer exist. Other items and services are on the path to extinction, such as film for cameras, landlines, and faxes.
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), which seem to have a very uncertain future.
Regional shopping centers (RSC) are extremely large structures that are maintained solely though the revenue of shoppers. But year after year the amount of money generated by these retail centers has been decreasing due to the increasing popularity of e-commerce.
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.
Consumers are dramatically changing their buying habits. They are turning to the Internet in increasing numbers for their shopping needs and finding the convenience and economies overwhelming preferable when compared to traditional shopping centers. The Internet is not likely to draw 100% of consumer spending, but it will get enough to forever change the face of the RSC in America.