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Life in the “Biggest Box” world. Will bricks and mortar become a thing of the past?

By
Real Estate Broker/Owner with Richard Weisser Realty

Life in the “Biggest Box” world. Will bricks and mortar become a thing of the past?After the Mom and Pop shops evaporated in the radiant discharge of the Big Box stores, it seemed as if the paradigm shift in shopping habits had stabilized.

When shopping in the Big Box, one could see, feel, and touch all of their potential purchases in a climate controlled, intensity lit acre of countless hot item displays and rack after rack of merchandise.

But a new trend has emerged over the last five years in which these vast and expensive arrays of goods offer the savvy consumer little more than a test drive or a basis for comparison shopping.

When it comes time for an actually purchase the aforementioned products are purchased on the Internet and the resulting sale does not run through the Big Box cash register.

As a result we are seeing more and more of these “Big Box” stores close their doors forever. The business model is on the verge of being unsustainable.

Times change. Habits change. The ways of the past are but distant memories as merchants scramble for market share.

Where will it all end? Only time will tell.

Mike Cooper, Broker VA,WV
Cornerstone Business Group Inc - Winchester, VA
Your Neighborhood Real Estate Sales Pro

That's a good point, Richard.  I would never leave my home for a store if I could get everything right away.  My family at large are becoming cyber-shoppers.  It makes our lives much smoother, and we can shop at 1 am without a line.  Good insight!

Dec 08, 2011 01:14 AM
Mark Delgado
houses for rent, Solano County & Glen Cove - Benicia, CA
Benicia and Vallejo, Property Management, rental h

Americans are entrepreneurs by nature. New, and new again, business models will always be tried and those that work will last at least until trends change against them. There will always be all kinds of stores. 

Dec 08, 2011 01:22 AM
Richard Iarossi
Coldwell Banker Residential Brokerage - Crofton, MD
Crofton MD Real Estate, Annapolis MD Real Estate

Richard,

The "big box" stores disrupted the "mom and pops" largely due to price and selection. Now the same is being done to them through the disruptive internet technology. Me...I'm buying stock in FedEx and UPS. Everything still needs to be delivered.

Rich

Dec 08, 2011 01:24 AM
Steve, Joel & Steve A. Chain
Chain Real Estate Investments & Mortgage, Steve & Joel Chain - Cottonwood, CA

Richard,

While your observations are reportedly true we heard an interesting report from one of our sons. He is a manager of a "big box" electronic store. Their single day "Black Friday" sales were over $800K and short $8k of beating their all time record. I believe there are some value shoppers and some service shoppers. Those who visit a store just to test merchandise and then buy online probably aren't thinking their values though. JMHO

Thanks for the great topic of conversation,

Steve

 

Dec 08, 2011 01:25 AM
Richard Weisser
Richard Weisser Realty - Newnan, GA
Richard Weisser Retired Real Estate Professional

Mike...

It's so easy to buy online ... did I mention that my wife works at a large retail store? It's exciting and frightening at the same time! THX.

Mark...

But as a real estate broker, one has to be aware of these shifts before a client executes a 20 year ground lease! Thanks so much for jumping in this morning!

Rich...

Healthcare and transportation .... you can't go wrong! Thanks my friend.

Dec 08, 2011 01:29 AM
Richard Weisser
Richard Weisser Realty - Newnan, GA
Richard Weisser Retired Real Estate Professional

Hi Steve...

Some things to consider ....

Most of these records are due to longer operating hours ... most retailers extended their hours this year ... and deeper and deeper discounts.

Which translates to more sales with less profit. These stores depend on sales from Thanksgiving until New Years Day to carry them the other 11 months of the year.

These stores are paying employees less, cutting hours, and limiting benefits. Thanks so much for adding to the conversation.

Dec 08, 2011 01:50 AM
Matt Listro
National Credit Fixers - Matt Listro - Vernon, CT
Your Credit Repair Expert

Richard,

Great piece! I totally agree, cyber shopping is so much easier.  Thanks so much for the great post, love it!

:-)

Matt

Dec 08, 2011 01:51 AM
Don MacLean
New England Real Estate Center Inc. - Easton, MA
Realtor-Homes for Sale- Easton, Mass 02356

Richard, There will always be big box stores, just down sized a notch in the future.

Most of them have stepped up there online presence with even bigger deals and the rent...........let's just say.................people can answer phones from a lot less expensive locations

Enjoy the day

Dec 08, 2011 01:52 AM
Kristin Johnston - REALTOR®
RE/MAX Platinum - Waukesha, WI
Giving Back With Each Home Sold!

You are right about only time will tell, although I haven't seen many big box stores close around here

Dec 08, 2011 02:12 AM
Ralph Janisch ABR CRS Broker
Janisch & Co. - Conroe, TX
Selling Northwest Houston to good people like you!

You're right!  Only time will tell.  Personally I opt for the local purchase because I'm the type that wants what I want when I want it.  But if it's not available locally I will buy on the internet.

Dec 08, 2011 02:14 AM
John McCormack, CRS
Albuquerque Homes Realty - Albuquerque, NM
Honesty, Integrity, Results, Experienced. HIRE Me!

Richard excellent point and post.  Where will it end?  Who ever thought we'd be shopping the way we are today?  Sadly the days of Mom and Pop are gone for the most part

Dec 08, 2011 02:34 AM
Ken Brandon
Coldwell Banker Sea Coast Advantage (Jacksonville, NC) - Jacksonville, NC
Camp Lejeune, Jacksonville, NC

I agree there will continue to be an evolution. I think your post is true for the real estate profession as well. There have been mergers, acquisitions, closings, etc... and , in my opinion, done to buy time to figure out a way to survive.

Dec 08, 2011 02:52 AM
Bryan Robertson
Los Altos, CA

I could see a "store" where they have a handful of items on display and then the store dynamically adjusts the prices based on demand and competitive pressures.  If I can find it online cheaper, I'll get it.  But if a store could drop the price based on online pricing, that could change the game.

Dec 08, 2011 04:10 AM
Nancy Conner
Olympia, WA
Olympia/Thurston County WA

Shopping online can be very convenient - and save money - on some types of items.  But I really am kind of a tactile shopper who likes to touch, try on etc.  And I realize how much I value the things that may be more unique and not available in mass production style.  I hope there will continue to be room for the "shop small/shop local"  option to survive.

Dec 08, 2011 07:58 AM
Cheryl Dickson
Retired Realtor / Retired Home Inspector - Oklahoma City, OK
Retired Realtor, GRI / Retired Home Inspector

As I said in one of my last blogs, Internet is taking over, and soon you will be able to click the "BUY NOW" button to complete your real estate transaction. I sure HOPE it never comes to that, but it could.

I also notice that many items I used to grab off the shelf, are no longer IN the stores. Now they say: "Oh, we ONLY have that available ONLINE now". There goes my idea of CONVENIENT right out the door. I WANT IT NOW! In my hand today, while I'm HERE, in the store. Just sayin...

Dec 08, 2011 08:06 AM
Cynthia Larsen
Cotati, CA
Independent Broker In Sonoma County, CA

I've done most of my Christmas shopping online. I couldn't say that 5 years ago. Big Box stores and the USPS ... there will be some big changes ahead.

Dec 08, 2011 08:20 AM
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

Richard, I have been seeing a few more MOm and Pop stores in my area. Partly because fo the economy.  Most successful ones will carry specialized stuff taht the Big boys don't.

Dec 08, 2011 08:56 AM
Ginny Gorman
RI Real Estate Services ~ 401-529-7849~ RI Waterfront Real Estate - North Kingstown, RI
Homes for Sale in Southern RI and beyond

I have to say unfortunately Richard the big boxes are thriving in my area...on line suits most of my friends though...

Dec 08, 2011 12:41 PM
Connie Goodrich
Keller Williams Realty - McKinney, TX
CRS ABR (McKinney Realtor)Texas

The boutique specialty stores do struggle as the Big Giants make it hard to compete.  They purchase mass volume and can offer great prices, all wonderful for the consumer.  The specialty stores survive with their great personal touch, knowing their clients names and being a true expert and top customer care.  It makes it a struggle but as an agent, I appreciate the specialty business because that is what I offer and appreciate in others.  The Big Boxes that are closing have positioned themselves in over saturated areas or failed to keep up with their products and caring attitudes. 

Dec 08, 2011 02:11 PM