Is the online industry set to grab more business in the future?
Many experts in the field of online business believe that the sudden and marked switch from off-line to online operations prior to Christmas last year was a major turning point in the industry. The increase in online activity seems to have followed through into the early part of 2009 although we will need to see this trend continue to confirm the apparent switch from the off-line retail sector to the online sector. So what will happen to the off-line business arena?
There are serious concerns that the online business market will be able to cut costs to be bone, to the detriment of off-line traders, but highly beneficial to consumers who trade online. In many industries there is no way that the off-line arena can compete with online price reductions, something which appeared to be very common on the UK high street in the run up to Christmas 2008.
Whether this sudden shift from off-line to online trading is the result of increased security, increased awareness or people chasing bargains and discounts, is unclear but it does appear that the sector has turned the corner. The impact upon the off-line retail sector could be substantial and see many of the weaker components drop out of the picture.
Share this..
Related stories
Is the UK car manufacturing industry on the brink of collapse?
Amid claims that one of the U.K.'s largest car manufacturing plants is on the verge of collapse, the Unite union has today stepped in to try and pressurise the UK government into forwarding a life-saving rescue package. While the union has refused to name the plant at risk it has confirmed that upwards of 6000 jobs are potentially at risk. This is a direct consequence of the collapse in the UK car...
Read MoreD-Day for JJB sports
Monday will see the results of JJB Sports attempt to renegotiate the terms of leases on an array of shops across the country. Needing at least 75% backing from creditors the company is looking to cancel all existing leases and move towards monthly rental payments for at least 12 months on shops which are still open for business. The company's bankers, Barclays, Lloyds and Kaupthing are likely to s...
Read MoreThe ECB announces Eurozone rate cut
In a move which is expected to at least place a floor under the European economy the ECB today announced a further reduction in Eurozone interest rates from 1.25% to 1%. This is the seventh time that rates have been cut in Europe and is a further reflection of concerns that the Eurozone economy is still very sluggish at best.
There are a number of analysts who expect this latest int...
CBI expects 30,000 financial jobs to go in next six months
In a bitter blow to the UK financial sector the CBI has revealed expectations that 30,000 jobs could be lost over the next six months. When added to the 40,000 job cuts last year across banks, building societies, insurers and investment managers, this does not bode will have the future of one of the U.K.'s largest service sectors.
The CBI is also suggesting that profits and business...
Could Gordon Brown call a snap election?
While yesterday's announcement that the UK has officially moved out of recession was welcomed across the board, the disappointing growth of 0.1% was far less than analysts expectations of 0.4%. There is also a possibility that the figure could be downgraded in the short term as this initial figure is only the first estimate from the Office for National Statistics. There is growing speculation that...
Read More