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According to the Bureau of Labor Statistics, 50% of small businesses with employees fail in their fifth year. While rent is a proportionately large expense, other operating costs impact profitability like insurance, payroll and benefits, utilities, marketing, technology, professional fees, maintenance, and inventory. Consumer behaviors are also changing. Less discretionary time and a perception that online shopping is easier hurts retail. While some studies find that it takes longer to make an online purchase because of the vast trove of information at our fingertips, “free returns” make it easy to buy more than we need and return what we don’t. So, when and why do we choose retail? Consumer psychologist Phillip Graves believes the more familiar and predictable a product the more likely consumers are to feel comfortable buying online. Yet, studies show that consumers generally prefer to touch an item and have some personal interaction with an option to purchase online. Whatever factors drive consumer behavior, we all agree that empty storefronts do not paint a picture of a thriving community.
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