| Shopping Malls Face Oblivion |
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| Written by Allen Cymrot |
| Wednesday, 07 October 2009 18:14 |
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In today's changing world, new products and services are introduced almost daily. Products that were used everyday just a short time ago are now obsolete. And the rest are in the process of becoming obsolete.
In today's changing world, new products and services are introduced almost daily. Products that were used everyday just a short time ago are now obsolete. And the rest are in the process of becoming obsolete. Getting up to change the channel, using carbon paper, creating documents on a typewriter: these are all things that no longer exist. And other items and services are becoming less and less prevalent such as film for cameras and landlines. Faxes will soon disappear as well. One growing trend is that of online shopping. This activity has been gaining momentum in the past ten years and in the beginning was perhaps uncomfortable for some. The security of physically going to the store to investigate a product or try on clothing provided comfort and assurance to shoppers. But technology, strategy, and convenience have shifted the market and more and more consumers are turning to the web for retail shopping. Regional shopping centers (RSC) are extremely large structures that are maintained solely though the revenue of shoppers. But year after year the amount of money generated by these retail centers has been decreasing due to the increasing popularity of e-commerce. Even in the present recession where all retails sales are down, e-commerce is markedly less affected than traditional retail. And from the year 2000, when e-commerce sales represented only 0.6% of total sales for retail, these sales have increased to 3.6% in 2009. E-commerce sales are down approximately 4% since the beginning of the recession compared to retail sales, which declined over 10%. The impact on retail sales is exceptional and does not account for present and future impacts brought on by the development of new devices such as smart phones and kindle. Consumers are dramatically changing their buying habits. They are turning to the Internet in increasing numbers for their shopping needs and finding the convenience and economies overwhelming preferable when compared to traditional shopping centers. The Internet is not likely to draw 100% of consumer spending, but it will get enough to forever change the face of the RSC in America. DISCLAIMER: This article is provided as information only and is not to be taken as financial advice. Allen Cymrot is a veteran investor and strategy consultant for real estate investment. His investment principles and cap rate recommendations can be found at http://www.netgainrealestate.com Get a totally unique version of this article from our article submission service |