Why Shopping Centers Need eCommerce

Physical retail’s predicament is summed up by Mark Twain’s often misquoted adage that reports of his death had been widely exaggerated. Despite the myriad advances and expansion of e-commerce, consumers continue to do the majority of their shopping in physical locations. More over, notes Mike Kercheval,  president and CEO of International Council of Shopping Centers, 78 percent of consumers prefer to shop in-store and they spend six times more than they do when they are shopping on a screen (according to his organization’s data).

Independent of his data, however, the U.S. Census Bureau reported that 94 percent of retail sales were conducted in brick-and-mortar stores, while just 6 percent occurred online.

But consumers are viewing in-person commerce with a new eye and demanding more compete and digitally enabled experience.

“The rise of omni-channel retail strategies in which mobile, online and in-store experiences complement, rather than compete with, one another has ushered in a new era for online retailers. Birchbox and Frank & Oak are just a couple of examples of e-tailers that have planted roots to remain competitive and provide a seamless customer experience across all shopping channels.”

The in-store shopper is a bigger spender than his or her online counter-part.  Interestingly, the omnichannel in store shopper is a bigger spender still- with an average of 3.5 times more dollars spent per visit than their non-merchant channel enabled co-shopper.