During the last year, longstanding brick-and-mortar retailer chains such as Toys “R” Us, Payless, and Diesel USA have filed for bankruptcy.
Failures like these happen despite the fact that U.S. consumer spending currently is high, and the unemployment rate is low. Why is that?
The Amazon Factor
We cannot address this topic without first taking a good look at Amazon and the massive power it represents in the online commerce hemisphere. With US$258 billion in sales in 2018, Amazon accounted for a staggering 49 percent of all U.S. online spend, according to Forbes. On top of that, Amazon’s sales were up 29 percent, compared to 2017. Needless to say, Amazon is a growth rocket.
Two especially interesting Amazon trends:
Much of its growth stems from its Marketplace, where Amazon connects third-party sellers with Amazon shoppers. It now accounts for approximately 70 percent of the company’s retail sales. Amazon has been expanding its ecosystem to include more brick-and-mortar stores. Based on tests of different store concepts, it has gathered a large amount of data about how shoppers shop offline, in brick-and-mortar stores.
Amazon seems to be preparing a new omnichannel strategy, expanding its Prime concept to work seamlessly across both its