Why are physical stores closing down so badly? I didn't understand before, and didn't feel it deeply.
After being educated by physical stores, I also choose online shopping.
A few days ago I bought electric mosquito repellent liquid. A small store sold it for 15 yuan per bottle. I bought one bottle. When I checked JD.com, it was 5 yuan per bottle.
The price in physical stores is too much higher than JD.com.
The profit margin of physical stores is over 67%.
Ordinary consumers, who still goes to ordinary physical stores?
Many physical stores are much more expensive than JD.com and online shopping.
Many online purchases are also delivered home, such as Tmall Supermarket/JD.com/Pupu Supermarket, Hema, Meituan Grocery, Meituan Takeout.
Physical stores require walking to the shop and carrying purchases home. The round trip time could let me play 4 games.
Physical stores are expensive and troublesome, really going to close down.
Physical stores are limited by rent, staff, management, and coverage area. Their selling prices generally cannot be lower than online shopping.
If physical stores combine with online advantages, such as physical stores combining with Meituan Takeout and Meituan Errands, they can also achieve higher performance. Restaurants and milk tea shops have done this well, but convenience stores are still not doing well.