Here’s How Amazon-Proof These 13 Types Of Retailers Are
It goes without saying that retail is evolving. More shopping is occurring online, but the pace of change is uneven. “You can’t paint retail with broad brush strokes,” James Cook, JLL’s director of retail research, told CNBC in an interview. “You have to talk about the category changes … instead of saying retail is going down the tubes.” JLL took a look at 13 retail categories using consumer opinion data gathered by the firm, store closure statistics, same-store sales growth and e-commerce penetration, to gauge how it will look in the future. What they found was that these categories are facing different dynamics. All retailers must adapt, but the urgency is more pressing for some. “Shoppers each have a unique value system for determining how they buy and where they shop,” said Naveen Jaggi, president of retail brokerage at Jones Lang LaSalle. “We found that shoppers are motivated to go either in-store or hop online based on how much time they have, if they need to touch the goods and how much money are they willing to spend. The varying degrees of these values against different product types will determine how resistant they are to consolidation and migration online.” Here’s a rundown of their findings. The first four categories are likely to remain “entrenched in brick-and-mortar” because of retailers’ ability to create experiences here, JLL says. Then, several categories within retail will maintain a physical store presence. But they must also bring to the table “up-scaled” online offerings. Looking at the last three names on the list, consolidation and commoditization in these categories is moving sales online, and lessening the dependence on physical stores, JLL predicts. Read more at CNBC.
