Retail Sales Soar As Consumers Continue To Swipe-In The Holiday Season

(Click on image to enlarge)

Overall, while global advisory firm Deloitte expects two-thirds of consumers to begin their holiday shopping journeys at on-line retailers, with few or no physical locations, including auction sites, the in-store experience “still plays a major role,” as many shoppers “still prefer to interact with products in person.”

However, they noted that over half of shoppers plan on doing in-store research and buying on-line. “This consumer journey of mixing online and in-store for research, pricing and comparisons is now commonplace,” Deloitte added.

Market participants widely anticipate same-store cannibalism of product sales, as omnichannel options typically pit mobile swiping or desktop clicking against in-store purchasing.

Easy to Chew, But Hard to Swallow

The potential cannibalization of physical store sales due to e- and m-commerce signals that shoppers seem to prefer not only the convenience of the digital check-out and delivery processes but also have been experiencing the ineffectiveness of the entertainment value in in-store shopping.

(Click on image to enlarge)

A close up of a logoDescription automatically generated

Indeed, current brick-and-mortar stores largely resemble giant warehouses, with employed staff mainly serving the mechanical functions of product retrieval and sales ringing. In fact, many stores seem to be stocking ever-lower levels of inventory, perhaps in anticipation of lower foot traffic for their goods, while offering instead to order items on-line for their customers.   

Some anecdotal evidence suggests that it is not unusual to find abandoned registers and skeletal staff with less-than-ideal product expertise roaming the floors among larger retailers such as Macy’s (NYSE: M).

In fact, the general lack of in-store enthusiasm may be having an adverse impact on the Macy’s brand in general, as its third quarter of 2019 comparable sales fell 3.9% from the prior year, with adjusted earnings of US$0.07 per share down from US$0.27 over the same period.

View single page >> |


The author does not hold any positions in the financial instruments referenced in the materials provided.

The analysis in this material is ...

How did you like this article? Let us know so we can better customize your reading experience. Users' ratings are only visible to themselves.


Leave a comment to automatically be entered into our contest to win a free Echo Show.