The New York Times ran a report this weekend, suggesting that online retail sales may be losing steam. The report has gotten a lot of people talking across the industry, but it is slightly misleading. While the year over year growth may slow down a bit, overall retail sales will continue to grow with the help of online sales.
Retailers need to continue adapting their online retail strategies. I think the most growth will still be seen within traditional (“brick and mortar”) retailers who create an online experience that is an extension of the in-store shopping experience. This will continue to create consumers who are better informed, make more confident purchases, and feel a stronger connection to the retailer.
Traditional retailers should begin to view their online presence as an extension of their brand. They should seek to create communities around their brand instead of just pushing products. There is still a lot of room to grow in this area. The result will a more loyal customer and an increase in overall sales.
Margaret Brennan at CNBC writes that online shopping is not dead yet. Good look at the rise in non-traditional online sales, including sales in footwear and apparel.