Insights from a Business Insider Intelligence Report (available
HERE) on the growth of digital retail highlight the following four points:
-
E-commerce is cruising with no indication of slowing down. BI Intelligence forecasts that digital retail sales will reach $632 billion by 2020. This means online sales will continue to eat into in-store purchasing, placing pressure on brick-and-mortars to remain profitable.
-
Digital is moving to the core of retailers' strategies, and existing real estate can be leveraged to support a digital business. Large retailers' stores are densely distributed, providing an opportunity for them to serve multiple purposes.
-
Ship-from-store has proven to be beneficial for retailers that have tested it. The results retailers have seen include higher sales, faster delivery times, easier inventory forecasting, improved margins, and lower costs.
-
Large retailers with densely distributed stores and low-turnover inventory are in the best position to test the ship-from-store model. Retailers need ample square footage to turn existing aisles or backrooms into storage for online orders, and slower turnover in order to convert excess inventory to online order.
Source - Business Insider