Retail Revolution | How Retail Businesses are Quietly Shifting Online

Retail and small businesses alike are undergoing a revolutionary transformation, Quietly! This transformation is due to several factors. These factors include recent advances in technology, consumer spending, and changes in economic standards. As big retail businesses are adopting new tech to their businesses, At the same time, small competitors are copying suit. Old technology may hinder or put many small businesses out of business in a big turn of events when consumer spending aligns with new tech. Fierce competition to keep pace with market space and profit margins will force small businesses to diversify their sales channels. As many retail locations close other small businesses should shift their reach to consumers.

Retail Businesses Current Trends

Many Retail businesses are quietly pivoting from traditional brick-and-mortar models to online after advancements in E-commerce technology such as Shopify POS and economic advancements such as digital currencies. Technological advancements in social media marketing and advertising make online business presence more profitable and consumer-friendly. Therefore most retail closers are not a sign of decline for the company as many are transitioning into the online space.

On the contrary, Many retail businesses are maintaining their brick-and-mortar business while at the same time operating as online businesses. Furthermore, more than 80,000 new online businesses started from 2021-2024, many are retail businesses going online using Shopify. Most of these businesses are taking advantage of the Shopify POS system which merges a business’s online and brick-and-mortar channels into one with an incredible system that also merges with social media channels for marketing purposes

Equally important, We see a big trend in retail businesses establishing their online business through acquisitions and buying online business. This method has many upsides and it has become a trend. Even if the business isn’t generating income, Many Businesses are buying online businesses due to them being prebuilt. While others are taking established online businesses to new heights.

Source: Flippa Data, Google Trends Data

“The new retail industry standard will be online capabilities that merge with customer experience”

The Benefits of Online Retail For Retail Business

The shift to online retail offers numerous benefits for traditional brick-and-mortar retailers. Those that have entered the digital marketplace by acquiring Online businesses or by starting their online venture enable retailers to leverage advanced technologies, achieve rapid scalability, and maintain a competitive edge by staying ahead of technological advancements across various sectors. Other benefits include:

Increased Reach: Online stores can reach customers beyond their local area, expanding their potential market.
Improved Customer Experience: E-commerce platforms offer features like personalized recommendations, easy returns, and 24/7 shopping.
Enhanced Efficiency: Online stores can automate many tasks, such as inventory management and order processing, reducing labor costs and improving efficiency.
Data-driven Insights: E-commerce platforms provide valuable data on customer behavior, allowing businesses to make informed decisions about marketing and product development.

The Rise Of Online Business Acquisitions

The retail industry, small business, and e-commerce sectors have seen a surge in online business acquisitions. From 2023 nearly 7000 New Retailers from the brick-and-mortar space have been purchasing online businesses to expand their digital enterprise by acquiring established e-commerce, agencies, and other online businesses. After acquisitions, Retail businesses leverage advanced technology, scale quickly, and are on pace for developments in all sectors of technology.

Here are some specific examples of well-known retailers who have acquired online businesses, along with the financial details of those acquisitions:

Walmart acquired Bonobos a men’s clothing retailer, in June 2017 for $310 million. This acquisition was seen as a strategic move by Walmart to expand its online presence and reach a younger demographic. Bonobos was known for its innovative online shopping experience and its focus on high-quality, custom-fit clothing.

Tractor Supply Company acquired Chewy.com, an online pet pharmacy, for $8.8 billion in October 2024. This acquisition will help Tractor Supply expand its reach into the pet market.

Do it Best Corp., a hardware and home improvement cooperative, acquired its rival True Value in October 2024. This acquisition will create a larger and more powerful cooperative that can compete more effectively with big-box retailers.

Kohl’s debuted a Babies R Us baby registry in October 2024. This move is part of Kohl’s strategy to expand its baby and toddler offerings.

The trend of online business acquisitions is likely to continue as retailers look to expand their reach and compete more effectively in the digital marketplace.

Shopify Leading The Transition from Retail to Online Business

The recent surge in retailers transitioning online or starting an online business has started for several reasons. For example, Shopify is leading the transformation. It is not because of its popularity. This is due to its integrated features, advanced payment systems, and seamless media integration. Shopify is an industry standard for e-commerce and retail businesses starting or transitioning online. All over the world retail businesses are using Shopify to transition and open their online businesses.

Source: Flippa Data, Google Trends Data

Retailers have been upgrading their current POS system to Shopify’s POS system. Retailer‘s current POS systems act as a barrier to transitioning online. This is because they lack integration with other media channels. This upgrade helps bridge the gap between in-store and online businesses. It maintains a consistent brand presence across all sales and social media platforms. While unifying their back office into one platform including the online store, in-store, social media, finance, employee training, inventory, etc., is why retailers are all switching to Shopify, Quietly!

Integrating Shopify POS into retail operations has revolutionized how businesses manage their business operations and sales. It enhances operational efficiency by synchronizing online and in-store inventory, reducing errors and labor costs. Moreover, Shopify POS has been instrumental in creating customer-driven experiences when leveraging the platform’s capabilities. Shopify uses flexible, state-of-the-art point-of-sale devices. These devices keep the brand front and center. They were simultaneously, catering to the needs of both online and in-store customers.

Conclusion

The quiet shift of retail businesses to online is a strategic response to evolving consumer spending behaviors. Through acquisitions and adopting platforms like Shopify and Shopify POS, retailers are positioning themselves for success in the digital age. This transition is not just about survival. It’s about thriving in a market that increasingly demands convenience. We expect more businesses to leverage e-commerce acquisitions and transition from traditional retail and brick-and-mortar businesses. The future of retail is online, and the silent revolution is setting the stage for the small online businesses of tomorrow.

“Disclosure: This Page may contain affiliate links, which we may receive compensation if you click on these links and make a purchase. However, this does not impact our content. We provide valuable and unbiased information to help you make informed decisions”