Amazon as awesome or apocalyptic is a trick question. The answer requires a distinction of Amazon being awesome or apocalyptic to whom and why. If you were to simply answer the question at face value, the answer would be both. Disruption 2.0 refers to Amazon’s latest stealthy (or not) attempt to disrupt the world of physical retailing. But this time, I don’t think they know what they are in for. Maybe that’s why Jeff Bezos opted out of the Chief’s chair. Awesomeness Consumers would say Amazon is awesome for all the obvious reasons. In fact, …
Operations
What Home Buyers Want Now: 10 Post-Pandemic Priorities
The residential real estate market has been a bright spot during the pandemic-driven economic downturn that began early last year. There were initial fears that we might see a repeat of the real estate meltdown that started in 2008, when millions of homes entered foreclosure and homes lost an average of 30 percent of their market value. But so far, housing has performed better than expected. Boom Towns According to the National Association of Realtors (NAR), in 88 percent of metro areas tracked, single-family, existing home prices rose by …
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Drugs, Wellbeing and Finance
Last month the broader retail world applauded two of the nation's largest drugstore chains when they moved women into senior management roles. The gender divide rooted in the tradition of the male pharmacist's early 20th century small-town location was finally overcome. Up to now, male leadership of beauty, OTC and first aid products was skewed and often curiously inept. The drugstore has made huge strides and taken major steps forward in the interest of female empowerment. One could argue that female management has more empathy and …
For Retailers, It’s Time to “Go Green” or Go Home
One storyline that was somewhat overlooked during the unfolding drama surrounding sleepy videogame retailer GameStop earlier this month – a David vs. Goliath story egged on by Elon Musk in which thousands of small retail day traders looked to deep-six hedge funds’ short bets on the stock – was where this so-called trend of ‘meme’ investing is likely to head next. In a recent research note, analysts at Bank of America said they are concerned that “ESG darlings” (Environmental, Social, and Corporate Governance funds) might be affected by “the …
Malls Are Transforming into…Corporate Centers?
It's been just over five years since the International Council of Shopping Centers published "Envision 2020" - a landmark study (full disclosure: I directed the study) demonstrating the need for malls to completely reinvent themselves in an Amazon-dominated retail world. The consensus among industry leaders around the globe at that critical moment in time was clear: transform or disappear. Poster Children Certainly, over the past half-decade or so, there have been some impressive mall transformations - properties where entertainment, leisure …
A Tale of Two Generations
The young versus their older counterparts is a tale as old as time. But the balance is changing with a Boomer generation practicing wellness and experiencing longevity (the pandemic notwithstanding). So, who are the real market drivers today? Next-gens were the driving force before Covid. But now, as Gen Z and millennials race to find new career paths, mature consumers with money in the bank are undergoing a renaissance as a market power. Population Explosion Before millennials were born, their Boomer parents, had the largest population …
The Point of No Return
The cost of returns is estimated at $550 billion for 2020 and the number of online returns has more than doubled. In 2020, the pandemic accelerated online purchasing with non-physical store sales ending the year up an impressive 23 percent. However, higher ecommerce sales mean higher online returns. Returns fraud is another serious issue: cybercriminal activity and returns fraud are already costing states $1.5 billion in lost taxes and over 741,000 jobs per year, according to a report by Appriss Retail and the NRF. The growing shift to digital …
Retail’s Next Chapter
Macy's recent announcement that it is closing more than 40 stores as part of a three-year plan to shutter approximately 125 stores wasn't unexpected but was still a huge blow to the retail industry. The 163-year-old department store chain has joined a long list of iconic retailers that are drastically downsizing with several filing for bankruptcy protection. They include Neiman Marcus, JCPenney, Sears and Lord & Taylor, which liquidated all its stores and is in the process of moving to a pure eCommerce operation. Retail Reformation These …