These Retailers Are Profiting Off The ‘Amazon Effect’
You may have heard about the “Amazon effect” — the online retailer’s ability to grab market share from department, apparel and other brick-and-mortar stores. But now, some of those traditional stores are using the same strategy, eventually dividing the retail landscape into winners and losers. The winners ultimately will be able to compete online, said John Conlon, chief equity strategist at People’s United Wealth Management, a subsidiary of People’s United Financial Inc. PBCT, in Bridgeport, Conn. Many traditional retailers have recently announced rough quarterly sales results. Still, 1.3% growth in retail spending in April makes Conlon believe that the main problem is “not with the consumer, but is more concept-specific” to the companies. “The large department stores still follow the model they have used for a long time,” he said in an interview Thursday. “Consumers are shopping online and have become more conscious of bargains.” Read more at Market Watch.
