It’s here, it’s real! The digital wave seems to be swooping in big players in the fight for greater revenue from e-commerce. In a bold move, Adidas, the sports giant closed many of its brick and mortar shops across the world to focus its investment on digital activities. Last year alone, it closed 220 shops and will continue to reduce its store count in 2018 as well. ”Our website is the most important business we have in the world,” the CEO Kasper Rorsted has said.
The company registered a 57% hike in online sales revenue in 2017 as compared to the previous year. The target is to more than double the revenue of 1.6 billion euros to four billion euros per year by 2020 using digital sales. Simultaneously, another American footwear retailer, Foot Locker has announced that it would be closing 110 shops across America. Experts are calling these moves as the “retail apocalypse” as companies reshuffle strategies to attract more customers.
However, this should not be misconstrued as the fading away of brick and mortar selling, as numerous players are, in fact, also redesigning their omnichannel strategies and positioning the in-store experience as a key ingredient in the perfect shopping recipe. Nonetheless, the move by giant players like Adidas and Foot Locker reiterates the fact that digital is here. How other e-commerce retailers will follow suit and how the dynamics of digital versus physical will play out on the field is something that the world has to wait and watch.