Is Mall Shopping Greener Than E-Commerce?

The Wall Street Journal: “Could going to the mall be better for the environment than shopping online? That’s the surprising claim in a new study from Simon Property Group, the nation’s largest mall landlord. The argument is that mall shoppers often travel in groups and buy more than one item, reducing their environmental impact. Online shoppers, meanwhile, return products more often, and the shipping requires more packaging.”

“Among the factors Simon looked at was how many people went on the trip and ‘the idea that shoppers combine mall shopping trips with other errands.’ The report also examined the impact of product returns both online and in stores … The report found that online shopping had an environmental impact that was 7% greater than mall shopping, if shoppers bought the same number of products both ways.”

“The issue isn’t settled, however. A 2013 master thesis at the Massachusetts Institute of Technology’s Center for Transportation & Logistics, for example, examined various ways consumers could shop in stores or online. ‘Results show that online shopping is the most environmentally friendly option in a wide range of scenarios,’ the thesis concluded. The MIT thesis examined how some shoppers combine the two channels, sometimes researching products both in stores and online, or buying online but picking up or returning in a store. As a result, the thesis also found, ‘as more consumers leverage traditional brick-and-mortar alternatives to their online buying behaviors, some of the environmental savings quickly erode.'”

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UK Record Shops Enjoy Record High

“The number of ‘bricks and mortar’ entertainment stores has reached a record high – despite rising online sales of music and film,” the BBC reports. There are now some 14,800 shops selling CDs, DVDs and Blu-ray, with supermarkets and high-street chain sales leading to the rise … The number of stores selling music and video has more than doubled since 2009, with DVD and Blu-ray available in 14,852 stores in 2015 and CDs and vinyl in 14,727.

Kim Bayley, CEO of the Entertainment Retailers Association: “Conventional wisdom has always suggested that the internet spelled the end for physical entertainment stores, but these numbers show that traditional retail still has a place, particularly for impulse purchases and gifts. After all, you can’t gift-wrap a download or a stream.”

Bayley adds that “the trend is clear – just as the internet has demonstrated that accessibility and convenience are key to selling entertainment, physical stores are demonstrating that if you put entertainment in front of people, they will buy it.”

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Omnichannel Trips Target’s Supply Chain

The Wall Street Journal: “Target Corp.’s plan for a retailing future that marries its stores and online sales is being tripped up by a supply chain from the past. The Minneapolis-based discount chain is moving away from a largely one-size-fits-all model toward one that can be customized to give each of its 1,800 stores tailored layouts, product selections and ordering patterns.”

“But that approach is being stitched onto a distribution system designed before e-commerce demanded that its stores also become local distribution centers and showrooms for online customers … The problems Target is addressing are common to large brick-and-mortar retailers who have added new ways to serve online shoppers … these capabilities—like letting shoppers pickup online orders in stores and shipping from stores—are disruptive to retailers’ regular operations.”

“Customization isn’t just a means to get local delicacies on shelves, but also to tackle some basic problems—like how many feet of paper towels or boxes of cereal are needed to keep shelves stocked in very different locales. In the past, Target could adjust to those patterns more easily when the supply chain required moving goods from distribution centers to shelves. Newer problems are tougher.”

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Working on the (Supply) Chain Gang

“For many companies, competing both online and at the mall can mean trading fat profit margins for more customers—at least for now,” reports The Wall Street Journal. “Fashion retailer DSW Inc. has given shoppers the option of placing online orders for out-of-stock items without leaving its stores. And, the chain is both fulfilling online orders and accepting returns at its growing number of locations.”

“The company is betting those efforts will pay off by increasing customer loyalty even though they aren’t adding to profits in the near term, said Roger Rawlins, who oversaw DSW’s omnichannel strategy before recently becoming CEO. He said customers who buy DSW products through multiple channels spend two or three times as much as those who shop exclusively in its stores or online only.”

“The strategy ‘ultimately allows you to grab additional market share, and then as we learn through using all these capabilities, we hopefully should be tweaking to be able to generate incremental profitability,’ Mr. Rawlins said.”

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