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 things that no longer exist. And other items and services are becoming less and less prevalent such as film for cameras and landlines. Faxes will soon disappear as well.
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.
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.
Even in the present recession where all retails sales are down, e-commerce is markedly less affected than traditional retail. And from the year 2000, when e-commerce sales represented only 0.6% of total sales for retail, these sales have increased to 3.6% in 2009.
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.