How Retailers Will Survive In The Amazon Era
There’s no way around it—the past year has been rough for retail. Even the stalwarts have taken a hit: Nordstrom had a terrible run on NASDAQ; Macy’s cratered, with its stock ending 2015 40% down for the year; and Walmart is shutting down over 250 stores nationwide. Why so much bad news, so fast? Well, there are a few incidental reasons, such as an economy that has people saving instead of spending, and an unseasonably warm Q4 that kept families away from seasonal purchases, like a new space heater or down jacket. But, it’s also about a little company in Seattle called Amazon, which is steadily eating the world of retail. And when we say eating, we mean in one bite; according to The Motley Fool, about one of every three product searches begins at Amazon. Just think about what this means for other retailers. A third of their potential customers are starting at their competitors’ front door, leaving them clamoring for scraps and losing costly acquisition dollars (and margin) to the likes of Google and, increasingly, Facebook. And as Amazon enhances Prime, their base of customers grows and becomes increasingly loyal. Read more at Fast Company.
