Amazon is making big sales, but brick-and-mortar retail still plays a role


How often do you shop online? Buy items from Lululemon (LULU) – Get Lululemon Athletica Inc. ReportTJMaxx (TJX) – Get the TJX Companies Inc. (The) report.or Nike (NKE) – Get the Nike Inc. report on a digital or personal platform?

According to a 2021 survey conducted by statistics, 80% (263 million people) of the population of the United States shop online. This survey also concluded that 56.6% of US consumers prefer online shopping to in-person shopping. There are a variety of reasons for this, such as B. Easy access, no queues, endless options and discounts. But is that really true? Do the vast majority of people prefer digital means of buying clothes to the traditional in-person way?

Maybe not?

Yes, it’s true, people still prefer to go to a retailer in person to purchase their items, especially clothing.

Ecommerce in 2020 for Lululemon accounted for 52% of total sales, not much more than the in-store percentages. NikeE-commerce accounted for 21% of total net sales in 2020. Marshalls (owned by TJX Companies, Inc.) was generally an in-store brand, not even one Launch a website through 2019. All TJX brands are about the treasure hunt, the idea of ​​shopping and not knowing what you’ll find.

And yet TJ Maxx has more than 1,000 stores in the US alone and is one of the largest retailers in the US. The financial year ended on January 29, 2022 achieved net sales of approximately $48.55 billion. That’s more than the $32.14 billion it generated a year earlier.

Even the US Department of Commerce reports that e-commerce sales accounted for just 14.3% of total sales in the first quarter of 2022. So the survey of people’s preferences does not correspond to reality.

Big retailers like Walmart (WMT) – Get the Walmart Inc. report and goal (TGT) – Get the Target Corporation report may not have to worry as much in the ecommerce world as you may have previously thought. Both have invested in curbside pickup/delivery: aim with Sent and Walmart offers same-day pickup and delivery (priced at $7.95 or $9.95). fee). Both brands also use BOPIS and BORIS strategies, where BOPIS means buy online, collect in store and BORIS means buy online, return in store.

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In 2019, before Covid, e-commerce sale for totaled $6.6 million. Then, in 2020, there was a massive jump to $16.2 million. target in the third quarter of 2020 Drive Up sales increased by 500%, in-store pickup by 50% and delivery by 280%. This has all been attributed to a rise in e-commerce.

However, in 2021generated 81.1% of Target’s total sales from in-store purchases and only 18.9% from online purchases. And in 2022 is e-commerce expected to grow to 22.3%, but in-store shopping still predominates.

Covid accounts for much of the surge

The large increase in delivery, right-of-way and pickup from 2019 to 2020 for Target can be attributed to the onset of the Covid-19 pandemic as people became more inclined to avoid contact with others. But as noted in 2021, a small percentage of Target’s total sales came from online shopping, and it didn’t grow to a significant amount in 2022. This can be attributed For various reasonslike the interactive experience of shopping, it’s a traditional experience, there are no shipping costs, and you can consider buying an item while seeing it in action.

Even with online competitor Amazon, these retailers do not have to worry about some items (AMZN) – Get the Inc. report. As of July 14, Amazon shared its best selling items of the day, most of which don’t include clothing but makeup, skincare, watches, towels, kitchen utensils, toys, cleaning products, dog treats, and the list goes on. The only item of clothing required to try on is listed: Levi’s jeans (LEVI) – Get the Class A report from Levi Strauss & Co.

So when it comes to apparel, companies like Walmart and Target are offering an in-store convenience that Amazon can’t: fitting rooms. People tend to promote all this hype about online shopping, when in reality, buying in person is more important to most people. Have you ever bought an item of clothing on Amazon and it doesn’t fit and then have to struggle to return it? And out of all these digital brands that we have, how many are purely digital? Most stores offer online and in-person options. It seems workable for the mutual relationship of personal and e-commerce.

This conversation about online and in-person shopping extends to other areas of life. @KaeronHurley on Twitter (TWTR) – Get the report from Twitter Inc sums this up well, noting that home commitments like meetings, grocery shopping and clothing shopping are becoming easier to manage with the pandemic. We can get all that at home, be it the infamous zoom (ZM) – Get the Zoom Video Communications Inc. report or Google Hangouts (Google) – Get Alphabet Inc’s report for meetings, instacart for groceries, Amazon or your favorite clothing website for your desired clothes; Businesses have adapted to the pandemic by providing desirable at-home services.

Even so, it’s evident that while online shopping seems to be the most common option, replacing in-person shopping isn’t as easy as you think.


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