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Article 2 (Oct 2018): Some brick-and-mortar stores thrive
October 30, 2018In small towns and cities all over America, malls are closing, shopping centers are vacant, and the cause is e-commerce. But physical stores still have power and some sectors are showing resilience, according to Forbes.
Nine companies on the list of Top 10 U.S. retailers is made up entirely of players that rely on foot traffic: Wal-Mart, Kroger, Costco, Home Depot, CVS, Walgreens, Target, Lowe's, and Albertson's. The principal markets for these retailers are groceries, clothing, and home improvement supplies -- all more desirable when purchased in person. Consumers still want to examine fresh produce. They would rather try on new clothes before they buy. Home improvement products such as lumber and tools are still get-it-now items.
In addition, according to a study by the CBRE Group, 70 percent of Millennials -- the largest, most connected consumer base -- still prefer to shop in stores.
Amazon, the big destroyer of retail, must know that too. Their recent purchase of Whole Foods for $15 billion is a dramatic example of their play in the brick-and-mortar space.
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