2006-08-03 05:27:01 · 4 answers · asked by Nougatocity 2 in Business & Finance ➔ Small Business
Yes and no. Among the top 100 Internet retailers by 2004 revenues, there were 40 chain stores, 28 catalog/call center companies, 24 Web-only merchants and eight consumer goods manufacturers:
http://www.internetretailer.com/article.asp?id=15099
Web-only outfits have no stores to cannibalize; for catalog-only outfits, such "cannibalization" would be welcome, since it decreases call center loads. Overall, cannibalization can be desirable for manufacturers that get to ship directly and avoid dealing with channel issues altogether (provided that fulfillment doesn't cost them a fortune). Chain store operators can definitely cannibalize stores with online offerings, but many chain stores look at Internet retailing as a way to expand their product range without having to stuff the stores with extra inventory...
2006-08-03 05:54:49 · answer #1 · answered by NC 7 · 1⤊ 0⤋
no they do not cannibalize them at all although there will be changes coming . They complement brick and mortar and big box stores as they all are online also . The cost of heating and cooling big and small boxes will in the future have an impact on stores big time . Online you generally do not pay sales tax with quite a few of the companies . Shipping is guaranteed and the products are easy to return and as gas continues it march towards a $100.00 a barrel people will want to drive less . On the other hand most people like to feel , see, touch , and handle what they are buying and that will be the same forever for that group . Stores in the future may have 1 item of everything they have inn a brick and mortar store for you to see , touch , and feel although you can not buy the dispaly piece and they wuill have computer terminals there for you to place your order . All done by debit card or credit card so you will need to protect your credit rating big time to shop in these stores of the future .
2006-08-03 07:41:33 · answer #2 · answered by Anonymous · 0⤊ 0⤋
No, there will always be a place in retail for brick and mortar stores. Most people have to see and feel what they are buying. It's not cannibalism, it's capitalism.
2006-08-03 05:29:40 · answer #3 · answered by Blunt Honesty 7 · 0⤊ 0⤋
Actually, they feed off each other, by offering so many of the same items.
2006-08-03 05:39:42 · answer #4 · answered by Nosy Parker 6 · 0⤊ 0⤋