Digital transformation, omnichannel retailing, and personalization are key to survival for traditional retailers.
Nexcess, the premium hosting provider optimized for WordPress, WooCommerce, and Magento, released a report on economic shifts and their impact on the dwindling traditional commerce sector. The report uncovers the reasons behind stunted traditional commerce growth, strategies for future-proofing through digital transformation, and the steps brick-and-mortar retailers can take to survive.
Brick-and-mortar businesses have faced a tough few years. Technological innovations, the pandemic, and changing habits of consumers have all contributed to the slowed growth of the traditional commerce sector. Meanwhile, ecommerce sales have grown rapidly: ecommerce sales grew 7.7% compared with a 0.5% increase for overall retail sales from Q2 2022 to Q2 2023.
“Ecommerce sales grew 7.7% compared with a 0.5% increase for overall retail sales from Q2 2022 to Q2 2023.”
Brick-and-mortar retailers aren’t as nimble and scalable as fully-online counterparts, and it’s hurting business. In fact, Chapter 11 bankruptcy numbers jumped 68% in the first half of 2023.
As online purchases continue to grow and overall retail sales remain largely stagnant, it poses a challenge to the traditional commerce sector. However, there are steps brick-and-mortar retailers can take to stay competitive and meet the evolving needs of consumers. Retailers are learning that options such as curbside pickup can attract customers. In fact, this offering has grown 66% year-over-year.
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“It is intriguing to see how consumer behavior continues to evolve, and faster than ever before,” says Reid Peifer, VP of Creative at Liquid Web.
“At Nexcess, our mission is to help businesses who want to make money online and we’re hoping that our report empowers brick and mortar business owners to embrace digital transformation and keep pace with consumer expectations. We’re all about transformation, and we pride ourselves on helping organizations of all sizes start, manage, and expand their online businesses — something we’ve done for 23 years.”
With an array of offerings spanning enterprise level to SMBs to starter markets, Nexcess supports sites and stores around the world with fully managed hosting for WordPress, WooCommerce, Magento, and more.