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Pandemic further shifts brick and mortar retailers online
Is the future of retail in the new year virtual? As the pandemic forces owners to rethink their businesses, some are deciding to forego the brick and mortar concept and shift business completely online.
SAN JOSE, Calif. - Is the future of retail in the new year virtual? As the pandemic forces owners to rethink their businesses, some are deciding to forego the brick and mortar concept and shift business completely online.
Three months after she graduated from Santa Clara University, Ibi Oluwole opened her dream store Ibiss. The women’s boutique has sat on Lincoln Avenue in San Jose’s Willow Glen for the past 11 years but soon the storefront will be gone.
"It was a nice long run," said Oluwole. "I don’t feel like the dream is taking away or anything, it’s just switching courses a bit and changing with the times."
Like many retail store owners, Oluwole has dealt with high overhead and low sales, a 50 percent drop during the pandemic. She’s now made the decision to be an online only store come February 15, a difficult decision but a necessary one with her livelihood at stake.
"If I’m feeling and looking and thinking long-sighted, the best call is to really embrace the digital side of things," said Oluwole.
A few blocks down, Ohana Board Shop sits vacant after closing its physical store December 31, also choosing to go virtual on February 1. The owner told KTVU it was too difficult to stay open with the county's restrictions.
"Great neighbor, sad to see them go," said Vince Falcone of Falcone Coins. "I would hate to see a lot of businesses follow in their footsteps."
Nationally, Macy’s announced it’s shuttering 45 more locations by mid-year. The Richmond location at Hilltop Mall is one of them. 133 employees are expected to be laid off.
"This winter is going to be really difficult for all kinds of brick and mortar stores," said Robert Chapman Wood, San Jose State University Professor of Strategic Management.
Experts said brick and mortar sales will likely not improve until the earliest Spring when a vaccine is more available.
A permanent shift to online is unlikely, one expert said, given competition from Amazon and Wayfair and people like to try on what they buy.
"I suspect that the companies that were successful in brick and mortar stores are going to be back as brick and mortar stores," said Wood.
As for the owner of Ibiss, she said she’s leaving the door open for a storefront, just not this year. She said, what she'll miss most is the human connection with her customers.