I see more and more retail shops closing. I have a proposition for companies that already operate an online shop. Most of these businesses, especially bookstores, offer considerable discounts on their websites. The outcome? Almost no sales in the brick-and-mortar locations, causing physical stores to close one by one.
My recommendation is that companies sell products in retail stores at the exact same price as online. One may counter-argue that physical locations face higher operating costs. That is precisely why they must match—or even slightly undercut—online pricing. The in-store sales volume must generate the revenue required to cover operational overhead. When a company maintains a large price disparity between its physical and digital storefronts, customers default to ordering online, leaving the physical shop with zero sales. Without sales, how can overhead be paid?
An online store serves millions across the country and abroad, whereas a physical shop relies primarily on nearby residents—excluding locations in high-density tourist areas. Since most retail outlets sit outside primary tourist zones, survival depends on selling effectively to the immediate neighborhood. To achieve the necessary inventory turnover to cover overhead, pricing must align with online rates.
Companies should evaluate physical stores as hubs for brand loyalty and local advertising. Nothing generates stronger brand equity than customers walking out of a store carrying branded shopping bags filled with purchased goods.
Online retail is largely commoditized; shoppers use price-aggregation engines and select the lowest bidder. Conversely, if a physical retail shop matches those online rates, friction vanishes. The shopper purchases immediately and promotes the brand while walking down the street.
My father was a tradesman. I spent considerable time in his shop when I was young, learning from his trade experience. The managers driving strategy today often lack ground-level trading experience—specifically, buying unbranded goods from wholesalers and selling directly to a local customer base where survival demands pure execution. That foundational commercial logic is precisely what corporate management lacks today.
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I see more and more retail shops being closed. I have a proposition to make for the shops that already have an online shop. Most of these shops especially bookstores have considerable discounts on their websites. What is the outcome of this? Almost no sale on the brick-and-mortar shop! Then the retail shops close one by one.
My recommendation to these companies is that they should sell the products the same price as the online shop. One may counter argue that retail shops have higher cost. And I would say that's why they have to sell it at the same price maybe even slightly less. The sales in the shop have to pay for the costs of operating the shop. Given that almost everyone does their shopping online. Having considerable price difference between the same company's physical and online shop means almost no sales for the physical one. Then how will you pay for the costs?
Online shopping serves millions of people distributed around the country and even people outside the country. However, a physical shop is only accessible by the neighboring people. Of course that depends on the touristic regions. Considering the number of shops distributed around the city, most of them are outside the touristic zone. What does it mean? You have to be able sell to your neighbors. How that can be possible? By offering the same price as the online. That way you can pay for the bills of the shop.
The companies have to look at their physical retailers as their advertisement and brand royalty establishment points. If more and more people exit the shop with the companies shopping bags full of purchased goods. Nothing can beat that brand royalty and advertisement.
In internet the online shops have almost no distinction. You search the product on the lowest cost finder websites and make your purchase from the lowest online reseller. On the other hand, if a retail shop offers comparable prices, it becomes no brainer for the shopper to put the item into their shopping cart and exit the shop with purchase and walk down the streets with your company's logo on it.
My father was a tradesman. I spend considerable time in his shop when I was young and I learned many things thanks to his experience and willingness to share is knowledge with me. Unfortunately, the companies I have been talking about are managed Plaza people. They have no real trading experience. What I mean by real trading is to buy from wholesalers and sell it in your shop as a no brand firm. In order to survive you need to do a lot of things properly and those experiences are what's missing from the managers at Plaza's.













