As we shift towards an age of internet shopping, some retailers are falling behind. Five years ago, online sales contributed to about 5% of a retailer's total sales. Now, it has jumped to 9%, and continues to climb. It is becoming clear that there are items people just don't want to buy in-store anymore, and those who fail to offer good online shopping services seem destined to go out of business.
For retailers, the future seems to have only one certainty: they need to step up their services. Websites need to be easy to find and navigate, and offer products that are more convenient to buy online. Stores need to be more fun to visit, with sales associates who are helpful and have good knowledge of the products for sale. Some stores, like Borders, will fall victim to offering products that people are more willing to buy online. Others, like Barnes & Noble, will develop ways to keep customer loyalty while advancing to the digital era, with new products like the Nook.
The bright side to all of this is for the consumers. The world of retail is about to be much more fun and easy for the everyday shopper, which means a better experience every time you enter a store. Also, stores will become easier to navigate, with many products being sold online only. While retailers may lose out on online shopping, consumers are sure to win big.
Source: http://www.economist.com/node/21548241
Wednesday, February 29, 2012
Sunday, February 26, 2012
Oil Prices and Global Recession
There has been talk for awhile now about the possibility of a global recession, given the poor economic climates of countries like Portugal, Ireland, Greece, and Spain. With recent raises in oil prices, it seems that we are just waiting for the first domino to fall and take down the global economy.
Europe is struggling the most right now, as crude oil reached an all-time high of 93.60 euros per barrel this week. They currently import oil from Iran, as part of an attempt to prevent the development of nuclear weapons. David Hufton, from the oil brokerage PVM, claims that "The West's determination to prevent Iran acquiring nuclear weapons is coming at a price - a price that might include a second global recession triggered by an oil shock."
To make matters worse, Israel has refused to rule out the possibility of launching a strike at Iran's nuclear facilities. The consequences of this, combined with the loss of supply from three mid-sized producers (Syria, Yemin, and South Sudan), could be spikes in oil prices as high as $150 a barrel. This would exceed the all-time high of $147, reached in 2008. Could these prices be enough to send the U.S. and Europe into a recession?
Source: http://www.reuters.com/article/2012/02/26/us-oil-recession-idUSTRE81P0JA20120226?feedType=RSS&feedName=topNews&rpc=71
Europe is struggling the most right now, as crude oil reached an all-time high of 93.60 euros per barrel this week. They currently import oil from Iran, as part of an attempt to prevent the development of nuclear weapons. David Hufton, from the oil brokerage PVM, claims that "The West's determination to prevent Iran acquiring nuclear weapons is coming at a price - a price that might include a second global recession triggered by an oil shock."
To make matters worse, Israel has refused to rule out the possibility of launching a strike at Iran's nuclear facilities. The consequences of this, combined with the loss of supply from three mid-sized producers (Syria, Yemin, and South Sudan), could be spikes in oil prices as high as $150 a barrel. This would exceed the all-time high of $147, reached in 2008. Could these prices be enough to send the U.S. and Europe into a recession?
Source: http://www.reuters.com/article/2012/02/26/us-oil-recession-idUSTRE81P0JA20120226?feedType=RSS&feedName=topNews&rpc=71
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