The Internet as retailer

It is being widely reported that Internet shopping over the Thanksgiving weekend jumped dramatically, especially on Thanksgiving Day. Apparently, while everyone was waiting for the turkey to cook, twice as many people as last year went online to do a little shopping. Friday also saw a big increase (about 50% more).

The big loser was Walmart, which did not see the big increases expected. Other stores, like Target, apparently did better. There are all sorts of theories explaining various aspects of the holiday shopping--that Target offers a nicer shopping environment and better quality, that Walmart shoppers bought from Walmart.com instead of going to the store, and so on. All the explanations probably have some truth to them.

I'm more interested in the implications for smaller and rural communities. One interesting fact is that half of broadband users were apparently shopping online, by one estimate. That's a big number, and I think the reason is that you really need (and want) broadband for online shopping. Browsing an online catalog by dialup is painful. You might as well get in the car and drive to the shopping center.

For rural communities, affordable broadband and the willingness to shop online means people living in these towns and regions have much the same shopping alternatives available to them as people in the suburbs and big cities. But you have to have the affordable broadband.

It also means that small towns and communities may want to think differently about their approach to retail. In many of the towns and regions in which I work, there is much worry and discussion about the lack of retail. Maybe this is not the problem we think it is--if your residents have affordable broadband. It may be that money spent on retail initiatives might be better directed at quality of life issues that will attract entrepreneurs and businesspeople to the community, who know they can shop online, and instead want a Main Street that supports small businesspeople (lawyers, accountants, copy services, coffee shops, good restaurants, etc.). Finally, the change agent is affordable broadband. Instead of putting new street lamps on Main Street with the hope of reviving retail stores there, invest in a public broadband infrastructure that will bring broadband providers to town--thereby letting people shop online.

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