[ad_1]
<div _ngcontent-c14 = "" innerhtml = "
Amazon is the elephant in the world's retail room, but that does not mean that online sales across the sector will overshadow brick and mortar retail sales. (Photo by Alexander Pohl / NurPhoto via Getty Images)
Getty
From the Commerce Department reported February retail sales this week, various media have suggested that online sales have reached a major "tipping point" and have become the "king" of "the apocalypse of retail" overtaking& nbsp; brick and mortar sales at general merchandise retailers.
The problem is that online sales measured in the non-store sales category by the Commerce Department grew up& nbsp; about 400% since February 1999, rising from less than $ 12 billion to $ 59.77 billion in February, the truth is that online sales growth has slowed down and the retail share on a seasonally adjusted basis has not improved. did not increase at the sales rate. The share of online retail trade soared to 11.813% in February, compared to just under 5% during the same period 20 years earlier, according to the Commerce Department.
At the same time, general merchandise retailers, including late department store sales as well as super-centers and warehouse clubs, are far from representing the retail sector as a whole. They generated seasonally adjusted sales of $ 59.74 billion in February, representing only 11.807% of the retail pie. The remaining retail sales include grocery stores, home improvement retailers, electronics chains and clothing merchants, according to data from the Commerce Department.
Yes, the trend of consumers buying online is here to stay and the trend of underperforming retailers Victoria's Secret Gap brands that close their stores when they try a turnaround will not reverse either. & nbsp; Nor the fact that per capita purchases The square footage in the United States is & nbsp; higher than other major developed countries, indicating the need to remove more stores and shopping centers that are losing money.
But & nbsp; an apocalypse of brick and mortar retail is just not going on and the evidence is not lacking. The so-called digital natives, led by Amazon's space king and startups like Warby Parker and Casper, are embarking on mbad physical retail. The purchase of Amazon by Whole Foods and its plan reported to open dozens of grocery stores in several major cities are just a few examples, as well as its partnership with Kohl's & nbsp; for Returns, his bookstore and Amazon Go openings. That said, Amazon Lockers is present in various other retail stores, including Mattress Firm.
On the other side, traditional retail giants, such as Walmart, Target and Home Depot, capitalizing on their fleets of physical stores and online orders for in-store or sidewalk pickups are their main weapon against Amazon to reduce delivery costs of the last mile. Home Depot and best buy also boasted Importance for customers to seek advice and in-person product services.
Shopping centers are adding more restaurants and other "experiential" offerings than ever, building on the basic human need to socialize and interact. Food retailers and others also emphasized the need to see and touch consumers. Various studies have shown that Gen Z and Generation Y members who grew up on their mobile devices favored buying in brick and mortar spaces during the holiday season, even though they were also planning to make online purchases .
It's one thing to see total e-commerce sales outpace a retail sector. This is another thing that can be expected online, still a relatively small percentage of the total, to overshadow retail physical purchases.
This milestone, which would really make the front page, just does not happen, at least in the near future.
Related: Foot Locker returns to the center of shoe culture by focusing more on shoes
Related: Neiman Marcus plays retail theater
In connection with Forbes: Lululemon should worry about Nike's profits
Related: Levi's returns to the public stage with a bang, but how long will the hype last?
">
Amazon is the elephant in the world's retail room, but that does not mean that online sales across the sector will overshadow brick and mortar retail sales. (Photo by Alexander Pohl / NurPhoto via Getty Images)
Getty
Since the Commerce Department announced this week's February retail sales, several media have suggested that online sales had reached a major "tipping point" and had become the "king" of "the apocalypse of the retail trade ", thus exceeding traditional sales in general. merchandise retailers.
The fact is that online sales measured by the Department of Commerce in the non-store sales category have increased by about 400% since February 1999, from less than $ 12 billion to $ 59.77 billion in February. In fact, online sales growth has slowed down and the share of retail sales on a seasonally adjusted basis has not increased significantly at the sales level. The share of online retail trade soared to 11.813% in February, compared to just under 5% in the same period 20 years earlier, according to the Commerce Department.
At the same time, general merchandise retailers, including late department store sales as well as super-centers and warehouse clubs, are far from representing the retail sector as a whole. They generated seasonally adjusted sales of $ 59.74 billion in February, representing only 11.807% of the retail pie. The remaining retail sales include grocery stores, home improvement retailers, electronics chains and clothing merchants, according to data from the Commerce Department.
Yes, the consumer trend to buy online is here to stay, and the tendency of underperforming Victoria's Secret retailers in Gap to close their stores as they attempt a turnaround will not reverse either. The number of square feet per capita in the United States is also higher than in other major developed countries, indicating the need to eliminate more stores and shopping centers losing money.
But an apocalypse of brick and mortar retail just does not happen, and there is plenty of evidence. The so-called digital natives, led by Amazon's space king and startups like Warby Parker and Casper, are embarking on mbad physical retail. The purchase of Amazon by Whole Foods and its plan to open dozens of grocery stores in several major cities is an example, as is its partnership with Kohl's for returns, bookstores and Amazon Go openings. Amazon Lockers is present in various other retail stores, including Mattress Firm.
On the other side of the spectrum, traditional retail giants such as Walmart, Target and Home Depot are capitalizing on their physical store fleets and launching online orders for in-store or on-line collection. street as the main weapon against Amazon to reduce delivery costs to the last kilometer. Home Depot and Best Buy also emphasized the importance for customers to seek in-person product advice and services.
Shopping centers, meanwhile, are adding more restaurants and other "experiential" offerings than ever, building on the fundamental human need to socialize and interact. Food retailers and others also emphasized the need to see and touch consumers. Various studies have shown that Generation Z and millennials who grew up on their mobile devices favored buying in brick and mortar spaces during the holiday season, even though they were also planning to perform online shopping.
It's one thing to see total e-commerce sales outpace a retail sector. This is another thing that can be expected online, still a relatively small percentage of the total, to overshadow retail physical purchases.
This milestone, which would really make headlines, is not reached, at least in the near future.
Related: Foot Locker returns to the center of shoe culture by focusing on more than shoes
Related: Neiman Marcus plays retail theater
About Forbes: Lululemon should worry about Nike's gains
Related: Levi returns to the public stage with a bang, but how long will the hype last?
