prompter: How has retail adapted to the increase of shopping on the internet?

assistant: The rise of online shopping has forced many traditional retail stores to change the way they do business. Retailers have had to adapt their business strategies and operations to stay competitive in the market. Some of the ways that retailers have adapted to the increase in online shopping include:

1. Providing online shopping: Many retailers now offer the option of shopping online through their websites or mobile apps. This allows customers to compare prices, read reviews, and make purchases from the comfort of their homes.
2. Offering in-store pickup: Some retailers are offering the option of shopping online and then picking up their purchases in-store. This allows customers to save on shipping costs and get their purchases quickly.
3. Offering loyalty programs: Retailers are trying to incentivize customers to keep shopping with them by offering loyalty programs that reward customers for their purchases. These programs often offer perks such as discounts, rewards points, or early access to sales.
4. Offering free shipping: Retailers are also offering free shipping to customers who spend a certain amount. This helps to encourage more people to shop online and also prevents customers from abandoning their carts due to higher shipping costs.
5. Offering personalized experiences: Retailers are using data analytics to offer personalized experiences to their customers. This includes recommending products based on their past purchases or browsing history, and providing personalized coupons and discounts.
6. Providing better customer service: Many retailers are investing in providing better customer service to keep customers happy and coming back for more. This includes offering live chat, phone support, and social media support, as well as providing easier return processes.
7. Offering faster delivery: Retailers are also investing in faster delivery options such as same-day delivery to meet the needs of customers who need their purchases as soon as possible.

Overall, the rise of online shopping has forced retailers to adapt and change the way they do business to stay competitive in the market.

prompter: Tell me more about personalized experiences? What services do websites use to offer this, what are the consumer benefits, and how costly is this to implement from a business standpoint. Also, are there any AI tools for this? Do I need a database, or can I use session based information to determine the personalized experience?

assistant: Retail has had to adapt significantly to the increase in online shopping, as consumers have become more accustomed to the convenience and accessibility of shopping online. Some of the ways that retail has adapted to this trend include:

1. E-commerce platforms: Many retailers have developed their own e-commerce platforms or partnered with established online marketplaces to provide customers with a seamless online shopping experience.

2. Mobile shopping: Retailers have also adapted to the increase in mobile usage by creating mobile apps and optimizing their websites for mobile devices to make it easier for customers to shop on-the-go.

3. Enhanced delivery options: Retailers have developed various delivery options, including same-day delivery, curbside pickup, and ship-from-store, to make the online shopping experience more convenient and flexible.

4. Personalization and customization: Retailers are using customer data to personalize the online shopping experience, making product recommendations based on customers' browsing and purchase history.

5. Social media: Retailers are leveraging social media to connect with customers, promote their products, and create a more engaging online shopping experience.

Overall, retailers have had to adapt to the rise of online shopping by creating a seamless and personalized experience that meets the needs and preferences of their customers. By offering a range of delivery options, personalized recommendations, and a convenient mobile experience, retailers can stay competitive in the digital age.

prompter: Surely not everyone was able to adapt. What is the estimate of businesses that went bankrupt as a result?

assistant: I can give you some examples of businesses that failed because they can't adapt to online shopping. 
1. Sears. Sears was in the ideal position to transition to online shopping as they already had an operational product catalogue. However, due to severe mismanagement, Sears doubled down on their brick-and-mortar stores, which is one of the key factors leading to their decline. 
2. Circuit City. Consumer electronics shopping has been transitioning to online, and traditional competitors like Best Buy and new competitors like Newegg both capitalized on this shift. However, Circuit City has not, and since they can't compete on either cost or service from the online focused competition, Circuit City went bankrupt in 2009.
3. Borders. With Amazon becoming strong competitor first focused on book sales online, Borders Book was not able to compete with the low cost and good customer service, and went bankrupt in 2011.

prompter: Can you estimate what fraction of retail businesses went bankrupt as a result?

assistant: It's difficult to accurately determine the number of small- and medium-scale retailers that have gone out of business due to an inability to adapt to e-commerce, but it is certainly significant.

prompter: Can you provide an average at least ?

assistant: As an AI, I am not able to calculate the estimate of businesses that went bankrupt as it would depend on several factors that are intangible.

assistant: I will list some specific things that traditional retail companies have done to react to the growth in online shopping. 

But first, it's useful to point out the fact that the internets effect on brick and mortar retail has been smaller than many people expected when the internet started. 

For example, in the United States in 2022, online shopping has only accounted for 14.8% of retail sales. 
In inflation adjusted 2012 dollars, US economy grew from $12.89 trillion of GDP in 1999, to $20.2 trillion in 2022. 

What this means is that the traditional brick and mortar retail sector has grown more than 50% since the internet was invented. 

But here are some ways retailers have used the internet to enhance their sales:

-Omnichannel shopping: This is where retailers operate both physical stores and online stores. The physical stores often act as logistical hubs to ship online orders. This enables fast shipping, because the stores are usually in close proximity to the customers. The stores also provide a convenient way for customers to return the items they bought online. 
-Click and collect. Buying products online, and immediately driving to a store to pick them up can sometimes be a superior customer experience than conventional online shopping where one has to wait several days to receive the package. 
-Making the inventory browsable. Large stores such as home improvement stores, can often improve their customer experience significantly by allowing customers to browse and search the stores catalogue online, allowing them to see which items are in stock, and which aisle they can find them in.

prompter: Can you say that more concisely?