AMAZON HAS REACHED CRITICAL FINANCIAL MASS WHILE OTHERS NOW LAG
“Walmart is now hustling to bridge the gap, pouring billions into its tech to claw back some market share. Target, also a laggard, is similarly spending as much on tech as on its 1,800 stores. Both those companies, though, generate digital sales that are still only a small percentage of total sales, and a fraction of Amazon’s.”
Back in 2015, Forbes observed this trend:
“Earlier this year, the stock market value of Amazon.com surpassed that of Walmart, a turn of events that many saw as indicative of how badly brick-and-mortar big box retailers have lagged behind in building up their e-commerce.”
- Department Store Revenue (Mall Anchor Model) have seen revenues DROP 36% or 7.2B since 2001 (not even inflation adjusted!!),
- The problem is accelerating as mall traffic visits have fallen over 50% since 2010 to 2013,
- It is forecast that between 310 and 400 of the approximately 1200 US malls will close in the next couple of years,
- 3500 US retail locations are expected to close within the next few months - many as a result of the collapsing Mall Anchor Model.