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Holiday Freeze for Brick and Mortar
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Holiday Freeze for Brick and Mortar

By Darrin Duber-Smith

 

The consumer shift from brick-and-mortar buying towards e-commerce buying has been in full force for almost two decades now, and the 2017 holiday shopping season won't be any different. Indeed, Retailer brands that focus on physical locations have had what can only be described as a brutal year and their stock prices (company values) have been hammered by investors due to their overall poor performance. Indeed, we should all rejoice in the successes of Wal-Mart and Best Buy with regard to the online space now that Amazon controls about 60% of all online purchases and is now making a major foray into brick-and-mortar. Competition is always a good thing, and there are many concerns that Amazon might control a bit too much of the retail sector at this point in time. Such perceptions often result in regulatory scrutiny. Stay tuned for that.

 

Image result for e-commerce

 

And so it is Amazon that will largely benefit from the revenue growth that analysts expect this holiday season. Macy's, Target, Kohl's, and Nordstrom are all sucking wind, and it seems that the entire brick-and-mortar sector is being buoyed by Wal-Mart, Dollar General, Dollar Tree, and a handful of successful specialty retailers. Holiday sales are expected to rise about 4% from last year, modest growth to be sure, and almost all of this growth is expected to be online. And it is starting to look like some retailers will no longer be around come Spring.

 

Discussion: 

Young consumers are coveted by most marketers. What percentage of goods and services do you buy online versus in a traditional store? Compare your attitudes with those of your peers. What conclusions can you draw about the future of retailing from your anecdotal evidence?