Recently released data shows what everyone knows in their guts. Not only is eCommerce driving fashion retail growth. It’s also key to helping traditional brick-and-mortars stay competitive.
Between 2012 and 2017, the online fashion market saw 14% compound annual growth. Physical stores, meanwhile, saw only 1% growth over that same period. The statistics come from a report by Forrester, which (dryly) concludes that consumers have grown comfortable buying clothes online.
Old Retail Doesn’t Cut it
Indeed, consumers are comfortable buying a lot online now. But if any sector has felt the impact of that change the most, it has to be traditional fashion retail chains. In this case, we’re talking about the chains and department stores built on high footprint for volume foot traffic. Partly due to consumers going online to shop, around 9,000 stores in the US and 6,000 stores in the UK closed in 2017. Roughly 1-in-5 were fashion-focused.
Macy’s and the Omnichannel
eCommerce took its toll, but it is also the saving grace for traditional brick-and-mortar retail. Macy’s, once the top fashion retail department store in the US took a big hit in those same years of accelerated online growth. The company lost $3 billion in annual revenue between 2012 and 2017, a lot of due to Amazon. The company, however, has culled its physical stores and beefed-up its eCommerce presence. In other words, it is shifting to the omnichannel model, and going by positive investor reaction, the strategy is a winner.
Put It All Together
Fashion retail businesses use CIN7 to process orders and optimize stock for their eCommerce and brick-and-mortar channels in a single platform. With CIN7 automation, integrations with eCommerce platforms and marketplaces, and 3PLs, fashion retailers can manage their business today and scale as they grow.