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Business & Tech

The Cyber Holiday Showdown

As more consumers flock online for the holidays, what becomes of brick-and-mortar shops?

As Kennesaw shoppers join the rest of the nation and head online today for Cyber Monday savings, a particular question comes to mind: What is to become of our brick-and-mortar specialty stores?

Statistics show that online retailers have taken the world by storm the past decade.  The most proficient is Amazon.com, whose sales have increased to $7.56 billion. 

According to some estimates, online spending will double this Christmas season. 

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ComScore reports that online spending on Black Friday, a traditionally retailer-friendly day, skyrocketed 28 percent this year, with consumers spending $648 million.

ComScore cites the struggling economy as one of the main factors leading people to search more feverishly for online bargains.

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There's also the benefit of no crowds or lines.  

Kennesaw resident Daniel Gormley went out on Black Friday in search of a TV but chose not to take advantage of the sales.

"The one I was looking at wasn't a flat screen," he said. "I wasn't going to stand in line that long for one I didn't want, even one that cheap."

He said he'll check out the deals today in hopes of finding the TV he has searched for.

How is the swelling of online marketing affecting the retail owner, especially now that the holidays are upon us? Does the huge growth of online buying spell the end of brick-and-mortar retail?

Shane Smith says no.

Smith is an assistant professor of marketing at . He said the rise of online retail poses a huge threat to brick-and-mortar sales, especially smaller specialty stores, but won't eliminate them.

Brick-and-mortar "allows a person to have a tangibility," Smith said. He said the ability to pick something up and make sure it's what a consumer wants is an invaluable asset stores have over online businesses. 

"It's tough to replace that tangibility," he said.

Smith also said sales representatives provide peace of mind for consumers, although he acknowledged that the average representative is "losing his luster" as online reviews by consumers make research easier.

But what about the store owners? What do they think about all of this modernization?

Bob Tomely is the owner of next to . He opened the store three years ago, at what he calls "the worst time in recent history."

He said he doesn't feel particularly threatened by online retailers, no more than any other competitor.

"Retailers like Amazon are no different to us than brick-and-mortar stores," he said. "We consider competition competition."

Tomely has prepared for the holiday season with the help of Ace, which does heavy advertising and promotional sales.

Tomely said one of the chief reasons he does not feel that online sellers pose a greater threat than his brick-and-mortar competitors is because many brick-and-mortar stores do business online as well.

So are these two methods, online and brick-and-mortar, destined to unite? That is the case with such large companies as Walmart and Best Buy, but will it be the case for everyone?

Smith said the two methods have a lot to offer each other, with stores having one thing that online retailers desperately desire: advertising. 

He said the most difficult part of getting a foothold in online sales is marketing, but a brick-and-mortar store is its own best advertising. When he drives by a store, Smith said, he thinks about what he might need from it.

Online businesses do not have that advantage.

So Smith believes that the two modes of sales are destined to work together, a combination he calls "click-and-mortar." He and Tomely share the belief that retail stores are here to stay.

"The combination of brick-and-mortar and online is a great marriage," Smith said.  "Either way, they work together."

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