Why do traditional physical stores close down so much every year?

In the Internet age, with the change of customers' consumption habits and the increase of operating costs of physical stores, many physical store businesses are difficult to do, and the rise in store rents has also made many physical store operators miserable.

The new retail store is here. It is said that the spring of physical stores is coming, but many physical store owners are still difficult to operate or even close at any time. Why do traditional physical stores still make no money or even close a large area? As we all know, the development momentum of e-commerce is very rapid now. Taobao, Tmall and JD.COM platforms have covered all physical industries. They buy whatever they want, so it also has a huge impact on physical stores in various industries.

Ma Yun put forward the concept of new retail and recognized the value of physical stores. Three squirrels, Xiaomi and many other online brands began to open stores offline, and their performance was extraordinary. It seems that the physical store that was destroyed by online shopping has suddenly become a business hotspot. In fact, it is not the physical store itself that is popular, but people with Internet thinking are more likely to successfully open a physical store. Because they know more about the needs of consumers, are good at using big data, can also conduct online and offline two-way drainage, and how to use offline stores to make up for online deficiencies-experience, convenience, authenticity and credibility.

In contrast, although the operators of physical stores are aware of the profound impact of the Internet on consumers and even society, they have also begun to contact the Internet, join group buying, establish websites and micro-stores. But few people succeed. The online trend is like a duck to water, and the offline trend is not satisfactory. The reason lies in the different mode of thinking, which is the traditional business thinking of traditional physical store operators, such as buying low and selling high, waiting for customers to come to the door and taking location as king. However, today's business environment and consumers are far from being moved by these basic business models, and the traditional business model can no longer match the traditional business model. The new model is in competition.

Therefore, it is easy to explain that the number of traditional physical stores that close down every year is particularly large. High housing prices and the development momentum of e-commerce have had a huge impact on physical stores in various industries.