Dual play: Brick and mortar stores go online to survive e-tail surge

While online retailers are bound to eat into the market share of brick-and-mortar players, the pace at which they add share will slow down. “We believe the incremental disruption of online retailers on physical retailers is reducing,” analysts at Jefferies wrote.

The share of online retailing is expected to go up to 8% by 2030 amounting to $170 billion from the current 3% or $18 billion. During this time, the Indian retail market is tipped to grow by 9% as unbranded and unorganised players lose market share.

One reason for this is that brick-and-mortar retailers are all rolling out an omnichannel model. In its annual report for 2017-18, Shoppers Stop said: “This year the company will focus on strengthening its e-commerce presence to build on the investments made over the last three years to drive more than 100% sales growth, and to create seamless experience across online and offline in order to drive digitally influenced store sales, as well as adoption of digital channels by store customers and on leveraging its partnership with Amazon.

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