Well, we’re in the holiday shopping season. Obviously a big time for retail outlets. I’ve heard over the years that retailers get up to seventy-five percent of their revenues at this time. I’ve heard that they spend that much of their advertising budgets during the same time frame. Well, this is the season.
I’ve read an article from Siddharth on Seeking Alpha. He brings up some amazing numbers about the space. To me, retail is at a moment when decisions are crucial. Why? Stagnation. Stagnant growth.
The article points out that numbers last month for brick and mortar and Amazon (AMZN) were good. It also points out that growth in retail is a zero-sum game and growth is baffling. Some of the big names haves posted top line growth above five percent. Remaining retail chains are getting squeezed out. The growth is not for every retail chain. The mid-level companies are vying for only so much growth. If this doesn’t make a difference now, it certainly will in the future.
What kind of time frame are we looking at? I’d say three years. Retailers are going to have to develop an online sales model that can take on Amazon. Good luck with that!
Seeking Alpha article: Amazon: The Prince of Darkness for Small and Mid-Cap Retail
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