Money and Business

Special Report : Amazon Effect

By 21 South News Team  1822 22 April 2017

 Remember Borders? What about Circuit City, Tower Records, or Musicland? Those stores were all big chains back in 1995, when Amazon debuted. Now they’re all gone, due in part to pressure from the online retailer that’s upended the American retail landscape.
Jeff Bezos’ company has been blamed for killing off once-stalwart retail chains, forever changing the way we read and shop for books, and squashing small businesses. And to hear some tell it, the path to total Amazon domination is just beginning.With all the talk of the death of brick-and-mortar retailers, it’s easy to forget that online purchases at stores like Amazon make up just 8% of total retail sales in the United States. For many products, including groceries, clothing, health and beauty products, and appliances, people still prefer to buy in store rather than online, according to a 2016 survey by PricewaterhouseCoopers.

That’s not to say that the convenience and low prices offered by outlets like Amazon aren’t a threat to traditional stores. And it’s true that Amazon did help to put companies like Borders or Circuit City out of business, though competition from the online retailer certainly wasn’t the only reason they tanked.

“No business goes out of business due to one competitor. It’s usually due to a combination of factors,” Larry Chiagouris, a professor of marketing at Pace University in New York, told the San Francisco Chronicle. “But the Amazon factor became a major factor in those businesses gradually going out of business, from bookstores to record stores to electronics stores. They are a category killer.”

If these 10 businesses can’t figure out a solution, fast, they might be the next stores destroyed by Amazon.

1. Macy’s

macys-herald-square

Macy’s flagship store in New York City | Drew Angerer/Getty Images

Could things get worse at Macy’s? Sales are down at the mall chain, and the retailer is shuttering stores and laying people off across the country. Amazon will over take the department store chain as the biggest online apparel retailer in the country sometime in 2017. Pressure from the online behemoth is partly to blame for the store’s struggles, according to analysts, though some of the chain’s problems are of its own making. Other department stores, such as Kohl’s and Nordstrom, aren’t faring well either.

“The most exposed to e-commerce are the department stores: They’re carrying the same merchandise, and the in-store experience isn’t spectacular. So they’re losing foot traffic, and they’re discounting heavily,” Bridget Weishaar, an analyst at Morningstar Investment Service, told Bloomberg.

Are you ready to get office supplies or food from Amazon …

2. Office Depot

ofice-depot

An Office Depot store in Miami | Joe Raedle/Getty Images

When Staples and Office Depot announced a planned merger in 2015, one reason they gave for joining forces was to fight off competition from Amazon, especially when it came to supplying big businesses with office supplies. But a federal judge said the merger would actually reduce choice for companies looking to buy printer toner, paper, and pens because Amazon Business has barely gotten off the ground. The fact that the courts didn’t see Amazon as a big threat to the B2B office supply business could spell trouble for Office Depot, albeit indirectly. Now that the merger has fallen through, Staples might focus on eliminating its smaller brick-and-mortar rival, TheStreet reported. Inefficient delivery and a less-streamlined shopping experience are also hurting the chain, some have argued.

The way you buy food is changing …

This report was originally published and Cheat Sheet and can be reach at Stores destroyed by Amazon for outstanding research about “Amazon how hurt Retail”

              More news about Amazon Business Epidemic 

All three reported sales declines, and they aren’t alone. Dozens of other department stores and apparel retailers including Sears, Kmart, Nordstrom, J. Crew, and JCPenney have reported declines this year.

1.  How The ‘Amazon Effect’ Will Change Your Life And Investments by Adam Hurtung on Forbes

All three reported sales declines, and they aren’t alone. Dozens of other department stores and apparel retailers including Sears, Kmart, Nordstrom, J. Crew, and JCPenney have reported declines this year.

2. There’s a major threat to US retailers that no one in the industry is talking about By Hayley Peterson on Business Insider

The ILSR report claims that “Amazon’s tightening hold on our economy…, increasing dominance…, and ability to crush smaller rivals and block new firms from entering markets… is hobbling job growth [and] propelling economic inequality.

3. Sorry, But Amazon Isn’t Actually Annihilating Retail Jobs By AUTHOR: GEOFFREY A. MANNE AND JENNIFER MACLEAN. GEOFFREY A. MANNE AND JENNIFER MACLEAN on WIRED Business

Physical store fronts have been eclipsed by ecommerce masters like Amazon. The toll it’s taken can be seen in emptying malls and shopping centers across the country.

Among the casualties announced so far this year: Bebe said it’s closing all of its retails spaces, JCPenney (JCP) announced plans to shutter 138 stores by July, Payless ShoeSource is closing hundreds of stores, and Macy’s (M) said it’s shutting down 68 locations.

4. Stores are closing at an epic pace By Jackie Wattles on CNN MONEY!

amazon-infographic

Amazon Infographic: How a Single Company Gained a Stranglehold over Online Shopping and the Future of Retail Infographic credit – Institute for Local Self Reliance

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What Shoppers Still Won’t Buy on Amazon Infographic Credit – Enterpreneur

Source – Cheat Sheet | CNN | Business Insider | Forbes | Entrepreneur

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