Over the weekend the number of deals on eBay hit record highs and this was followed by news that online spending has increased by 77% on previous records. All this is furthering the view that High Street stores may be becoming a thing of the past.
The economic downturn has already been driving nails in the coffin of many stores and as the buying public is becoming more familiar and comfortable with online purchasing its difficult to see how the trend will reverse?
According to figures the most popular online purchases are books, dvds, electrical goods, travel, entertainment and some food. This is a bleak outlook for all high street stores stocking these goods as they cannot compete on prices. The current deflationary
period leading up to Christmas is hurting the high street stores badly but the trend of buying online might lose them their customers for good.
Let's imagine that in the future the majority of sales are online with just a few high street stores still going to enable the ‘try before you buy' type goods; clothes for example. Will we see all existing supermarkets move mainly into online sales operating
from their distribution centres and will the existing delivery firms gain on the back of this.
What is clear is that the use of online shopping is now taking over from the high street. Technology has turned the public into canny traders, as they are now able to search the web for the best price and even renegotiate in their favour. When the government
analyses the economic cycle, it must include online sales and sites such as eBay, as these are now becoming greater than those stores currently supplying the analytical data. The economic downturn may have accelerated the growth of online buying beyond the
point where the trend will ever be reversed. Goodbye stores it was nice knowing you!