The article first begins with the description of the Mall of America being threatened by Jeff Bezos who created an online book marketplace that eventually became an Everything Store. The benefits of online shopping lead to the beginning of the controversial issue of retail stores becoming the thing of the past. However, the Mall of America didn’t succumb to the challenge and set forth on a $325 million expansion to the mall in 2015 and lured new brands. They’ve also tried new leasing models in order to attract “pop ups and younger players” including Untuckit. The mall’s SVP, Jill Renslow, view on Amazon is a partner than a competitor. She’s even discussing with Amazon about the installation of pick-up lockers at the mall in order for the online …show more content…
Industry executives believe that what is occurring is painful course correction from stores growing too fast. Retailers have fallen victim to pressures regarding quarterly earnings, failed to invest in their stores and instead in share buybacks, and lacked the initiative to update on digital trends. Therefore, chains of retail stores soon dwindle away. The article then transitions upon how Fast Company studied how retailers are thriving in the “Age of Amazon”, (Fast Company). One factor is that retailers will carry products that consumers can’t get at other places. Target fashions its own merchandise and has items that other stores do not, and their sales have significantly increased. Though their technology side is lacking, they’re successful enough with their …show more content…
Nevertheless, opportunities are flowing everywhere for retailers. They’ll focus on their stores to attract more customers by updating their appearance, staff, merchandise, and staff. I also found it highly interesting about how B8ta has merchandise out for use with expectation that those who come into the store that they’ll order it online or the store will ship it to them. It brought up the point that the staff will be more approachable to consumers since their won’t be the pressure for the customer to buy something from the store. I agree with this considering for my line of work that would usually be by commision. However, I get paid by the hour for the sole purpose of the store’s atmosphere. The article had very good factual evidence and was very insightful! There’s hope in the “Age of Amazon” for
The article,¨Amazon.com Is a 21st Century Deal with the Devil¨, by Amy Koss talks about how Amazon is the Devil in the 21st century.The main idea of this article is why and how Amazon is the Devi in our century. I can see why that Amazon is the Devil because Amazon is taking away jobs from people. It also says that we don't want to interact with people and we don't want to go places. I also agree with the Koss because we just met people online and don't talk to people outside of our homes. The article says that people just go out then go back home and order it on Amazon. Amazon are destroying small independent bookstores. Amazon is also toying our sloth and make us want to buy things that we don't even need.
Present day Federated consists of both Bloomingdale’s and Macy’s stores and operates in 34 states as well as Guam and Puerto Rico. While Bloomingdale’s and Macy’s provide both private and national brands and are similar in merchandising categories (men’s, women’s and children’s apparel, home décor, shoes, beauty, and accessories), they differ greatly in culture. Bloomingdale’s, being more upscale, targets consumers that are more concerned with trend and quality than they are price. Macy’s targets the more value oriented consumer and represents a broader Federated clientele. Macy’s represents 423 of the 459 Federated locations while Bloomingdale’s represents only 36 locations. Because I can better relate to the value conscious consumer of the Macy’s division and because they represent such a large portion of Federated, I will further explore their current characteristics and behaviors that suggest that they possess qualities of both monopolistic competition and oligopolies.
The external factors impaction Macy’s in the retailing business and Martha Stewart Living Omnimedia are political, economic, technological, and social factors. There are two main factors impacting Macy’s retailing business. The first one is the advance of e-commerce in the 1990s and early twenty-first century. Customers were now exposed to online competitors who sometimes had the same products at a lower price. The second factor is the growth of specialty stores and discount stores such as Target and Wal-Mart. Due to the economy hardship customers were trading the higher levels of customer service and products selection to more affordable products in other to save money.
Key Issues The growing popularity of online retailing is attracting competition from traditional and online multi-retailers such as Wal-Mart and Amazon, which are gaining considerable market shares in many of the product segments included in the specialty retail sector. Currently, the majority of revenue is generated by store sales, but online sales from the stores’ websites are increasing. With the US dollar getting weaker, international sales from these US based websites are increasing too. This creates a significant positive outlook for the large incumbent players but also acts as a significant barrier of entry for new players.
Paco Underhill has created a way for stores to draw more customers in and spend more money by getting in the mind of the customers. I found some of Underhill’s theories to be true. Underhill’s theories have helped provide research of the actions of consumers inside of American Eagle, Meijer and Hollister, these theories include, the need for shoppers to acclimate to their surroundings, the way customers turn into stores, and by placing most used products in the farthest places away from the
Since the creation of Amazon in 1995, it has been a reference of adopting a successful strategy which has preserved over time; being the largest online store in the world nowadays. In addition, i...
By the 1980s, just before the rise of Wal-Mart, Kmart had become complacent. It believed it would be the king of discount retailing, now and forever. It didn't perform an accurate SWOT analysis, but to be fair, who could have seen the rise of Wal-Mart to the position of the world's number-one retailer? Still, as Wal-Mart built new stores in town after town, supported by cutthroat pricing and solid logistics, Kmart's complacency would cost them. Part of the problem was that as Wal-Mart was pouring money into information technology (IT), Kmart's IT budget continued to shrink – not just once, but several years in a row. While Wal-Mart's logistics and supply chain management got sharper, Kmart's stagnated. And while Wal-Mart was able to squeeze more value out of its stores and its systems, Kmart lost ground. By the time Kmart had finally decided to start devoting more resources to IT, it was so far behind Wal-Mart that catching up would have been a near-impossible task without the recession in the early part of this decade. With the effects of the recession taken into account, Kmart instead was consigned to also-ran status among discount retailers.
Whenever we go out shopping or relaxing at malls, we actually don’t see or recognize any effects of malls as we mostly go there for these two reasons. Malls are an integral part in the lives of America. They are shopping centers that have created a lot of buzz in many writers. This is because we have more malls in America than high schools. Malls have received praises from people like James J. Farrell, Jon Pahl and George Lewis who view malls as not only shopping centers but also as places that provide a reflection of the American culture and serve as centers of pleasure and entertainment. In contrast, William Kowinski and David Gutterson criticize malls for just being an artificial environment that creates disorientation among American shoppers. In my opinion, malls are just magnificent commercial buildings that create a sense of false dreams and imagination.
The best companies embrace change and make plans to create a future for their business like Amazon did. Amazon did not have to wait very long for their strategy to take affect because that the way that the future of business was going. All they did was waiting until the demand flourished and took over the book giant’s like Barnes and Noble and Borders market share. This proves that Amazon did their research and plan accordable so that their demand matches their supply. This also shows the type of value chain process and evaluation that they did in order to continue to conduct business which is quite genius. Their demand has increasable giving them many opportunities to expand. ...
One of the greatest opportunities for Amazon is an Online Payment System. The online system allows the company to reduce transaction fees and increase ease of use for their customers. Internet sales are increasing at a fast pace. This is a product of increased fuel prices, which make driving to a store less likely, and foreign purchases. This development allows foreign purchases to buy clothing as it becomes more popular abroad. Amazon’s biggest competitors can include retail stores that online stores such as Target, Best Buy, and Walmart among others, these can be considered the most dangerous for them since they have strong market share and can be a direct competitor since they attack the same market. Amazon wish to compete in prices, offering
Amazon is one of the world’s largest online retailers and is known to be the titan of e-commerce. As a go-to site for shoppers of all ages, as of 2017, it ranks number 83 on Forbes’ Global 2000 list of the world’s biggest and most influential companies. (Forbes, 2017) Targeting everyday online shoppers to merchants alike, in this technology based era, this company has grown exponentially over the years and altered the way people shop. Compared to the industry growth percentage of 15% over the past five years, Amazon has grown nearly double that amount by 28.3%.
Amazon.com was a venture into an emerging market of internet and had to face hidden and unexpected hurdles in order to survive and excel in the market. Therefore, Amazon.com kept modifying its strategies with their focus on enhancing customer experience of online shopping and to delivery exceptional services with complete convenience to their customers. One of the major strategic decisions was to compromise on cost saving stragegy when Amazon.com started to maintain its own warehouses in different countries in order to ensure timely and accurate delivery to their customers
"There's No Place like the Mall: U.S. Shoppers Unplug." Newswire. Nielsen, 23 May 2013. Web. 27 Feb. 2014.
Online retail and shopping sales has been growing consistently every year, not just in the US but worldwide. Not only does online shopping give customers more convenience, more variety, and more discreetness but it also gives customers better prices. While it is quite true that Wal-Mart has product variety and cheap prices – things customers want – the physical stores do not really give the convenience and discreteness that online retail and shopping does.
Department stores do not manufacture products nor create their own brands of merchandise, their products are not differentiated. As a result, consumers have low switching costs, customer loyalty is low, as they can easily purchase similar products elsewhere. These lower the barriers to entry, allowing new entrants a chance to gain customers.