Gone are the days when retail was all about brick &
mortar. "Click to buy" is the new name of the game, as
"transformation" is the new mantra among the retailers.
With changing times, an increasing number of consumers are using
smartphones and tablets to purchase items. Thus, retailers like
J C Penney Company Inc.
) and many others have incorporated e-commerce platforms to bring
in incremental sales.
Retailers are now largely concentrating on buyers' needs with
huge discounts, free shipping and providing ease of shopping, in
order to attract consumers to the online platform.
Adding to the services string is the announcement of Pay Pal, a
), which entered into deals with 15 retailers, to provide shoppers
with the flexibility to pay for their purchases via phones, Reuters
Despite these initiatives, it is clear that a huge chunk of
sales will inevitably be lost to online giants like
), as well as smaller and more localized shopping portals. Given
this trend, retailers are also tightening costs and focusing on
operating efficiencies to enhance shareholder's value.
The technological advancement in marketing, such as ecommerce
and online business, provides a win-win situation between buyers
and sellers. For buyers, it is primarily convenient (more choice,
less time spent, user references/feedback), while for sellers, it
is primarily cost efficient (requires relatively less real estate
and enables companies to expand the existing customer base
Moreover, it also enhances the visibility and reputation of the
retailer as a global firm offering great fashion and value at the
same time. On the other side, shoppers get the benefit of
purchasing researched products at the best prices, as they can
compare the prices being offered by various companies.
Going forward, the players who will be able to cater to the
needs of consumers will grow volumes and will have the final laugh.
Moreover, the ratio of converting shoppers to buyers will also
depend on the continued economic recovery and improvement in the
job market. This will ultimately boost consumer confidence while
increasing their spending.
AMAZON.COM INC (AMZN): Free Stock Analysis
AEROPOSTALE INC (ARO): Free Stock Analysis
EBAY INC (EBAY): Free Stock Analysis Report
PENNEY (JC) INC (JCP): Free Stock Analysis
MACYS INC (M): Free Stock Analysis Report
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