Final score: Stores 68, Online 27

Happy New Year! Unless you are a store retailer...

Interesting numbers posted by the Church:

Nielsen's spending distribution for 2005, with the percentage change from 2002 figures:
Stores: 68% (-10%)
Catalogs: 5% (-1%)
Online: 27% (+11%)

The shift is on... The question is why? I am certain part of it is because of the dismal experiences produced by the retail industry. While they instinctively understand that they are in an experience business, most are still acting like a commodity pitchman... Likely driven by Wal*Mart.

This reminds me of Joe Pine's comments about competition:
1. Dollars are fungible (customers can shift their spending quickly)
2. Time is limited (this is a huge part of the shift)
3. Attention is scarce (lots of noise out there, and the customer is getting good at blocking it out)

A couple questions to think about:
1. When is the last time you were at a store and could quickly find what you are looking for, and within seconds ask an all-knowing, omniscient clerk to search for like products?

2. When was the last time you were presented with some additional products that have been purchased by other customers who have purchased the same product you are purchasing?

3. When was the last time you were greeted by your first name walking into a store?

4. When was the last time you didn't have to listen to a teenager talk about what they wanted to do last night, and couldn't - described in great detail as if you were not present?

Any questions why online sales are increasing now?

The challenge for retailers to accomplish something of similar attraction.