May 14, 2010, 3:45 PM

Something to believe in: Chains can’t afford to be agnostic

A few years ago, successful retailers were said to be channel agnostic.

A few years ago, successful retailers were said to be channel agnostic. Turns out, the consumer is not channel agnostic. Two recent reports offer evidence that consumers are continuing to shift their buying online. And the big, real-estate-invested chains are paying the price.

The U.S. Commerce Department reported online sales were up 14.3% in 2010’s first quarter vs. growth of 3.4% at stores, excluding supermarkets. The just-out Internet Retailer Top 500 Guide reports that within the Top 500, where sales grew 8.8%, web-only merchants grew their collective sales by 19.7% while chains grew theirs by 6.6%. Equally interesting, for 26 of the 50 chains, e-commerce sales grew while comp store sales dropped. For 11 others, web sales grew faster than or didn’t decline as much as comp stores sales.

Chains who remain channel agnostic while consumers become Internet believers  are giving market share away to the web-only merchants and to their competitors who well crafted web strategies.

comments powered by Disqus

Advertisement

Recent Posts from this Blog

FPO

Brian Smyth / E-Commerce

How online retailers can price for profit in the age of data

The first step to eradicate price warfare in the retail industry is to widen the ...

FPO

Rob Garf / E-Commerce

The end of seasonal promotions and what it means for retailers

Retail sales vary relatively little between January and October as consumers buy when it’s convenient ...

FPO

Kim Garretson / E-Commerce

Amazon isn’t beating other retailers. They're beating themselves

Most retailers need to stop blaming Amazon for their bad results, and look at how ...

FPO

Guru Hariharan / E-Commerce

How to compete with Amazon in price and still make a profit

Offer deals on popular items to create a perception of low price, and boost margin ...

Advertisement

Advertisement