The retail revolution is unstoppable

The retail industry is undergoing a rapid revolution. Only a couple of decades ago, one could buy tools and hardware, book a holiday through a travel agent, purchase fresh fish, order white goods and TV sets, and get measured for a handmade suit in Valletta. Today, these retail outlets have become scarce in our capital as people flock to shopping malls or buy goods online.

More changes are expected to affect retail businesses in the coming years as online shopping becomes increasingly secure, convenient and reliable. Data published by the UK Office of National Statistics makes interesting reading. It appears that pensioners are the demographic group most likely to be hooked on online shopping.

Over the last 20 years, the number of “silver surfers”, as retail analysts label these older individuals, has tripled, debunking the often-held popular view that older people are averse to using modern technology.

Almost half of those aged 65 and over in the UK purchased goods online last year. Of course, most pensioners have the spending power but they also enjoy the convenience of shopping from the comfort of their homes at any time by using their laptops or smartphones.

Today’s most popular online purchases are clothes or sporting goods, but household goods, including toys, white goods and furniture, are also increasingly being bought online. Food delivery services have also experienced exponential growth in the last few years. Convenience has been identified as the primary reason for the surge in online shopping.

The use of credit and debit cards is also more secure than ever before, despite online scams still being common. Getting to the high street and finding a parking place is also considered an avoidable hassle for most people, even in countries where public transport is more efficient than locally. Traffic congestion is the biggest threat to physical retailers as consumers struggle to avoid the added stress of travelling to shopping areas.

More often than not, prices quoted on eBay and Amazon are cheaper than those advertised in high-street shops that are burdened with rental charges that, in prime locations, are prohibitive. Another unpleasant reality of this revolution is that online sellers, such as Amazon, have found ways to pay as little corporate tax as possible, a challenge that physical retail outlets often face.

It appears that pensioners are the demographic group most likely to be hooked on online shopping

The future for certain physical retail outlets looks bleak. The UK is seeing a bloodbath in its high streets. Many retail shops are closing and laying off employees. Even popular retailers on Britain’s high streets, which have been around for many decades, are downsizing or closing down and shedding jobs. House of Fraser, Toys R’Us, Mothercare, Carpetright, Poundland, Homebase and, now, Body Shop are some retailers that have had to reduce their physical presence in several UK towns.

No doubt, buying online is no longer restricted to acquiring books or mobile phones. Italian furniture companies are also increasingly offering online services for custom-made bedrooms, kitchens and office furniture. 

When people visit Valletta today, they are more likely to do so to have a meal at one of the many Italian-run restaurants that have mushroomed in every corner of the capital. Souvenir shops have replaced once-popular small retail outlets, as demand from cruise-line visitors for souvenirs promises better returns for owners.

The local retail outlets that have ventured to provide an electronic platform for selling their goods are generally still not fully exploiting their online sales potential. With a few exceptions, local online retailers have unattractive websites that are also not very user-friendly. The attachment to physical outlets is still preventing retailers from adopting the more successful click-and-brick strategy, which gives consumers a choice in how they shop.

The number of silver surfers will keep increasing and their use of online retail facilities is bound to multiply. They may no longer tolerate the hassle of going to our town centres to shop and engage in a little, often harmless, gossiping with their mates.

Jobs in the retail industry will continue to be lost and replaced by IT-qualified young people, delivery personnel and customer service personnel who deal with online shoppers’ queries. Restaurants and large food supermarkets are increasingly offering delivery services, having discovered that consumers became hooked on these services during the pandemic. Of course, these delivery services are causing even more congestion on our roads.

Other retailers must invest more in online sales technology and emulate the big online retailers, such as eBay and Amazon, that have endeared themselves to today’s consumers.

Nostalgia has no place in today’s retail revolution.