Losses, Mergers & Closures
Yesterday Office Depot announced that it is shutting down one-third of its domestic locations. This is on the heels of its merger with Office Max. Are big retailers finally feeling the online shopping pinch? It looks like mobile search is morphing quickly into mobile purchasing.
Big Box Store Examples
According to a press release, Office Depot reported an operating loss of $79 million for the first quarter even though the merger with OfficeMax was completed in November 2013. They also announced 400 stores will close, claiming it will reduce some overlap between the two chains.
Staples also announced it will close up to 12% of its stores in North America, citing that more of its business is moving online.
Is online shopping finally taking a big enough bite out of big box stores? It seems that the tiny screen is now a mighty force and retailers are now on notice.
eCommerce Stats for 2014
Custora’s eCommerce Pulse report indicated an 11% bump (year-over-year growth) for the first quarter in 2014. The report also highlighted online retail revenue growth, citing a steady incline since 2000. No surprise they also document an increase in mobile eCommerce:
- Retail revenue generated via a mobile device is up 35%
- Mobile is now 13.7% of all eCommerce orders
- 24% of online retail orders during Q1 2014 started as an organic search query compared to 20% of a paid search ad result.
Hungry for more online shopping stats? Download the full report which includes more double-digit growth numbers.
Online Shopping Lessons for the Average Biz
So what are the important online shopping lessons to be learned from Office Depot’s tale of woe?
- If you’re a retailer, make sure your online sales funnel is geared for desktop and mobile users.
- Mobile friendly websites are a must. We don’t recommend a separate mobile site; mobile friendliness should be built into your main online presence.
- Coordinate your organic SEO and Search Engine Marketing (aka AdWords or PPC) efforts. You’ll get a 30% organic lift while chasing market-share.
Did any of these online shopping stats surprise you?
How can we help?
Is your website mobile friendly? Not sure how to dig into your Analytics to find nuggets about your readers’ behavior?
We are the spectrum group, and we offer strategic and tactical consulting so you can monetize your online presence. Call us for a complimentary 30-minute consultation to discuss how to leverage customer testimonials.