If one were to jump into a time machine to travel back to 1995 or thereabouts, what would the publishers of newspapers and magazines have to say about the “Internet”? One might assume, at first glance, that the Internet would be a publisher’s dream: unprecedented reach beyond the usual regional scope, access to new readership, more advertising opportunities and expanded market share. But that’s not what happened. Hundreds of publishers, both regional and national, found themselves struggling, instead, to make sense of how to translate the digital venue into an improved bottom line. It didn’t help that this digital medium spawned a paradox: more readers, less circulation; more ad potential, less ad revenue. The very same readership who could be reached at unlimited distance through the Internet now enjoyed a smorgasbord of competing blogs, news and social media outlets from which to gather information. It proved too much, too fast, leaving print media to quibble over an increasingly fragmented market. That the print industry is struggling to remain afloat is widely appreciated now. But what’s only beginning to be appreciated is that much of the economy — bricks-and-mortar retailers, in particular — will face the same paradox: greater sales reach in the face of diminishing returns.
The chopping axe is coming for the traditional retail space now. But are retailers any better prepared than their print news counterparts?
Retail as We Know It — but for How Long? (more…)