Monday, December 2, 2019
Amazon has become a huge threat to big-box stores in recent years, but those retailers may be making a comeback this Cyber Monday.
Walmart and Target had bigger jumps than Amazon in online customer spending during the first two weeks of November compared with the same period last year, according research firm Edison Trends, which looked at more than 1.2 million transactions.
Walmart took in 51% more than last year, while Target followed close behind with a 47% increase. Amazon’s customer spending grew just 32%.
As retailers battle for market share, they are investing in their e-commerce options, and integrating them with brick-and-mortar stores. This includes adding more products to their online shops, offering in-store pick up for items purchased online and direct shipping from stores to customers’ houses, according to Nomura Instinet analyst Michael Baker. These companies are also investing in the infrastructure of their websites to allow them to handle big shopping days like Cyber Monday.
“Retailers have gone from being in denial about the potential threat of e-commerce to accepting that e-commerce is a real threat and investing to take advantage of the omnichannel asset,” Baker said.
They’re realizing that they can compete with Amazon to win back market share, he added.
There is a lot of competing to be done. Amazon sees more users start with its site when online shopping than on any other site, including Google, according to a recent report by Bain & Co.
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