Cyber Monday and the Continued Decline of Traditional Businesses

All the analysts are trying to size up what we are learning from the current holiday season when it comes to business. At first we were told that happy days were here again because the huge volume of sales on Black Friday (the first day most retail businesses go in the black, which is the day after Thanksgiving). Now we are told that the large volume was due to ridiculous sales that came too early (in the opinion of analysts), indicating a lack of confidence in consumers by retailers.

Regardless of what conclusions people want to come up with, this much I feel confident in saying: the traditional business is in serious trouble and days couldn't be happier for businesses on the web. According to Business Week, sales on Cyber Monday (the first Monday after Black Friday when people make purchases on the web on a large scale) grew an impressive 26% since last year, showing the continued shift from traditional stores. Why are we seeing the continued growth of online shopping?

I think it can be attributed to several reasons, including the fact that one can do it when he or she wants and people can do it largely how they want. Also, it doesn't interfere with work, which is often the case with traditional stores (many people often don't have time to go in the evenings either, the Web is far more convenient). Shopping online is becoming increasingly safer, especially physically (I haven't seen a computer mug anyone yet). Furthermore, there are no lines, which I know I despise.

However, I think the most important factor is that the brick and mortar businesses are trying the same kind of techniques they used to much less sophisticated consumers in decades past. They want us at their stores at midnight, or the sales are only for short time increments, or some other ridiculous treatment that doesn't meet the needs of the accumulators that are largely driving the economy today. In a recent interview Rupert Murdoch put it best when he said, "people want what they want when they want it." The Internet does just that. Sure there are still sales online, but they are typically measured by days, not hours. Treating consumers like animals who will jump hoops didn't work well in years past and it certainly doesn't work now. In stores, it feels as though businesses rule. On the Web, people feel like they rule. We shouldn't be surprised by the shift.