The shock of e-commerce
News link: http://www.bnn.ca/News/2014/10/1/Staples-closes-15-stores-in-Canada.aspx
As shown in this news, Staples Canada has closed 15 of 331 stores in this country because of the shock of online business. E-commerce has been developed at a rapid speed resulting from the technology and interactive information in recent years. Retail stores have been affected by the e-commerce trend widely and deeply.
Fewer people prefer to buy something in a bricks-and-mortar store in the modern society. Online shops offer the most convenience and the fast react of the trend to attract the customer. Moreover,they alter the tradition shop pattern. People now can shop at home instead of driving for a long time to reach a retail store. They can search what they want through a catalogue instead of wandering in a 20000 square feet store. On the other hand,online shop lowers the cost of operation a store. It decrease the rent and wage sharply. Also, it provides a better arrangement of inventory.
However, many retailers have taken actions to face the challenge of e-commerce. As Staples did, they close underperforming stores and decide to downsize the stores to control their cost. They wish they could adapt to the fast-changing market by the adjustment. In my opinion, tradition retailers should pay more attention to the cooperation with electronic commerce company. They should take advantage of these platforms to perform their own advantages in brands and products. It is also feasible for retailers to create their own e-commerce.