Electricity supplier depth impact store passenger flow to reduce profits

the "Wall Street Journal online edition published entitled" last week four store passenger flow into the new world "(Stores Confront atrophy New World of Reduced Shopper Traffic) review article said that the rapid development of electronic commerce not only the impact of the store sales, but also changed the consumer shopping habits, leading to the traditional traffic retailers shrinking.

below is the full text of the article:

poor performance

best buy the results released Thursday, which has become an underperforming retailer in the Christmas shopping season period. Like other retailers, best buy also blamed the poor performance of the high discount, that the retail industry price war not only hurt the profit margins, but also hindered the revenue growth.

however, the worst performance is actually a deeper reason: consumer habits are long-term changes, thereby reducing the traffic to the store, the shopping center and warehouse supermarket pricing ability greatly reduced. What is more worrying is that this shift may be permanent.


electronic commerce fast years ago to store a challenge, despite the major business entities deployed to a number of defensive measures, but did not seem to play a role. For example, best buy has adjusted store layout and marketing, even invited consumers to try the product in the shop, the electronic commerce is willing to act as a dressing room, allowing them to try in the products in the store, and then at a lower price to online orders.

best buy CEO Hubert · Joe Lee (Hubert Joly) said, even so, the company is still in the passenger traffic declined after the Thanksgiving weekend. Not only the increase in online shopping consumers, the development of network services also erode the demand for traditional consumer electronics products such as CD.

"the current atmosphere is affecting the flow of the store," Jolly said. "There’s no doubt about that."

passenger flow decreased by

U.S. retailers during the financial crisis hit, when the unemployment rate is not only rising, consumer spending is also a substantial tightening. However, despite the financial crisis over the past 5 years, but many consumers seem never to return to the physical store shopping.

U.S. market research firm ShopperTrak use of the 60 thousand passenger flow statistics throughout the country to track the flow of major shopping malls. The company’s data show that in 2013 the National Christmas shopping season is only half a year ago, 3 years ago. 2011 decreased by 28.2% in 2012, a decrease of 16.3% in 2013, a decrease of 14.6%.

network sales growth during the last Christmas shopping season, more than two times the store sales growth. Shoppers are also less likely to shop in the store, they will find their own online first

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