retail news in context, analysis with attitude

Bloomberg reports that a number of retailers - including Gap, JC Penney, Nordstrom, and Gamestop - have shuttered stores that they opened on Facebook, despite the social networking site’s efforts to become a shopping destination.

Analysts tell Bloomberg that the reason so-called “F-commerce” did not work as well as expected is that people on Facebook wanted to hang out with their friends, not be sold stuff or go shopping.

According to the story, “Business consultant Booz & Co. predicted in January 2011 that physical goods sold through social commerce would balloon to $30 billion from $5 billion by 2015, with Facebook contributing a majority of sales.” But now it is at least possible that the prognosis is not quite so rosy.
KC's View:
This doesn’t mean that Facebook has any less allure as a place to market products and services; it is just that, at least for the moment, actual purchasing is more likely to take place elsewhere. That’s actually okay ... all of this stuff is still relatively new, and there are going to be a lot of tests and a lot of failures as companies and consumers try to make sense of these various online and social media opportunities.