DMM Retail Industry e-News Issue #171
Target Aims to Provide What Online Retailers Can’t…
Making it easy for consumers to buy things online and then get them that same day by delivery or in-store has been a boon for Target. In a recent interview with CNBC, CEO Brian Cornell said “about 40% of the cost goes away” when Target fulfills an online order from the back of its stores versus shipping from a distribution center. “About 90% of the cost goes away,” when customers pick up at a store, use curbside pickup or use Shipt, the Target-owned delivery service. For now, it’s a space Amazon can’t easily compete with traditional retailers, including Walmart. The Robin Report recently noted that a study by First Insight found that “the frequency of people buying items on Amazon six times or more per month has dropped to 40 percent this year from 80 percent in 2017. 55 percent said they prefer to shop at Walmart versus Amazon, up from about 47 percent a year earlier.” Even running shoe leader Nike, according to My Total Retail, has decided to sprint away from Amazon.
…So, Online Retailers Seek Real-World Presence in the Malls
Many e-tailers are starting to see the benefits to having that real-world presence. A recent article in the New York Post notes that, “…online brands are rushing to sell their wares in the glare of floodlights and the hum of cash registers.” Online brands like UNTUCKit, Taft, Casper, Glossier (and, yes, Amazon). Nikki Gilliland of eConsultancy notes that e-tailers are going this route, “not just acquisition and visibility, but the ability to turn online data into insight, creating a seamless and convenient shopping experience across all channels.”
Some Ideas for Retail Success in 2020
Lots of people will have advice for you in 2020 (“Eat more fruits and vegetables!” “Spend more time on the treadmill!” “Get a gym membership that you’ll actually use this year!”). Maybe your kids won’t be as on-point as your humble e-newsletter editor’s, but there’s always someone out there who makes a good point or two. The folks at Vend (they make retail management software) came out recently with a list of a dozen trends and predictions for retail in 2020. Among them, the importance of community-building and participation, the increased marriage of social media and retail, and, “Experiential stores will continue to thrive…but so will retailers that provide tremendous value and convenience.”
Visit DMM / Shoppingcenters.com at the 2019 ICSC Deal Making Show – Booth #363
When you stop to think about it, it’s amazing how all those “1s” and “0s” combine to create data that can help your business. We’ve already done the hard part – gathering the data – and compiled it in a way that you can use it to make sense of your world. Come to the DMM / Shoppingcenters.com booth (#363) during ICSC’s New York Deal Making, December 10-12, 2019, at the Jacob K. Javits Convention Center in New York City, and see how the data we have on 8,490+ major shopping centers and malls, over 318,100 tenant locations and more than 42,500 VIP contacts can work for you! It’s the data you need, when you need it. Check out ShoppingCenters.com first, then be sure to stop by our booth! This event has always been a great opportunity for owners, developers, retailers, brokers, lenders, municipalities, property asset managers and product and service providers to gather under one roof to make deals and form successful partnerships. See you there!
DMM e-News - Issue #171
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