Friday, February 18, 2011

The changing face of retail

"Whitcoulls customers are being asked to spend at least twice the face value of their gift vouchers if they want to redeem them.

The bookseller, along with Borders, was put under administration in New Zealand and Australia yesterday, after Australian parent firm REDgroup Retail called in voluntary administrators to the business..."

I expect to see a lot more of this, especially in entertainment retail. The small specialist stores will survive, but mainstream music, video and books are being swallowed up by online sales.

I can see why- today I went looking for a CD at the Red Shed. Couldn't find it. On line it took me less than 15 seconds.

Then there is the far lower overhead of the on-line store.

Expect to see more of these stores vanish from sight soon.

1 comment:

Anonymous said...

Two things -
What the heck are you doing in the Red Shed in the first place?

And, those stores generate income for people who buy stuff. Price is not the only factor and I'll still buy from a shop because I enjoy the interaction with the people that work in the destination shops I visit.