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Wednesday, October 18, 2017

Online and Amazon Continue Move Forward

With interesting data and comments on the topic by retail experts.  And even with some classic retail help:  Kohl’s opens Amazon shops in Chicago  ....

Online and Amazon to grow more dominant over the next decade
By George Anderson  In RetailWire

Consumers will continue to make more purchases online while cutting back on in-store purchases over the next decade, according to a report by FTI Consulting, which forecasts total online spending in the U.S. to surpass $1 trillion by 2027.

Online sales, which now account for roughly 12 percent of total retail sales, excluding auto and gas, will grow to 22 percent over the next 10 years, according to the estimates.

“The impact of accelerating online sales growth has been evident in the past two years, with elevated levels of retail bankruptcies and announced store closures amid a non-recessionary environment,” said Christa Hart, a senior managing director in FTI’s retail & consumer products practice, in a statement. “If online sales double by 2023, as we expect, stores will have to contend with the prospect of losing the same amount of sales to the online channel in the next six years as they did in the previous 16. The frustration for many retailers is that even building a complex and expensive omnichannel enterprise has just kept them in the game instead of leading to renewed profitability.”

The biggest beneficiary of the shift from stores to online will be Amazon.com, according to FTI. The e-tailer, which currently accounts for 34.2 percent of online sales, will see its share grow to more than 50 percent of the market by 2027, the firm estimates. .... " 

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