The Retail Apocalypse Will Bring the eComm Boom | eComm Edge Weekly
The Retail Apocalypse Will Bring the eComm Boom
Retail Dive released a list of 27 retailers who are at high risk of not surviving the Coronavirus crisis. Combined these companies own over 100+ 9-figure or larger brands. Some of the biggest names include J.C. Penney, Neiman Marcus, Rite Aid, GameStop, Guitar Center, GNC, and L Brands (owner of Victoria’s Secret, Bath and Body Works, and PINK).
The companies listed above did over $64B in revenue in 2019, and those are just a few of the publicly traded companies that are currently find themselves in dire straights, not to mention the countless private companies who we don’t have easily accessible data on.
US retail will see hundreds of billions less in revenue this year than last. That money hasn’t magically disappeared, it’s being spent online instead.
The looming long term question for those in eComm is whether or not this sales explosion will be a permanent change, or if consumer spending will go back to how it was pre-coronavirus.
My belief is that this is the new normal, and that belief gets more and more cemented as legacy retail continues its wave of bankruptcies. Thousands of stores are going to close across the US, and they’re not coming back. That whole will continue to be filled by eComm.
Other Notable Links:
1. Bundling and the birth of new media companies – MEDIA OPERATOR
2. As expected, Amazon reports great sales numbers, but profits are down – PROTOCOL
3. Data on DTC growth numbers in the COVID crisis – MGR
4. Amazon accidentally leaked their email marketing template, here’s what we can learn from it – MEDIUM
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