Do Online Sales Take Away From Stores?

An article in the San Jose Mercury News brings up a point we often wonder about. Are online sales less desirable for retailers than transactions in stores?According to a Forrester Research-Shop.org study, Internet sales are forecast to grow 17% this year, hitting $204 billion. It is a large increase, but slightly down from the 21% gain, and $175-billion total retailers collected in 2007. The article has conflicting views on that matter. One person interviewed says that retailers prefer business done in their stores, while another says it doesn’t matter. Retailers just want you to shop with them, and they don’t care which channel you choose.Many retailers, like Macy’s, have said that that their online divisions are the fastest-growing segments of their company, and that customers that shop both in stores and online spend more money. But are retailers making a mistake focusing their efforts online when they already spend so much capital on their physical stores?