Retailers’ hopes and fears in the Amazon era
Selling is about getting the mix right, which means e-tailers and retailers using an omni-channel approach
The retail environment in SA is in a state of flux. Edcon Holdings’ financial problems paint a grim picture of a local retail environment that is struggling amid poor economic circumstances. They are not the only company suffering: Mr Price and Woolworths reported lower-than-expected Black Friday and festive-season trading, while internationally the changing retail environment has left Toys R Us, Gap, Sears and Debenhams either bankrupt or slashing expenses. While a tough economic environment and higher living costs are giving retailers a hammering in store, consumers’ shift to online shopping also cannot be ignored. Mr Price reported poor festive-season figures — retail sales grew by just 1.9% — but noted that online sales “were growing fast”. Woolies mirrored this pattern with its online sales recording an impressive 46.1% growth, which it now contributes 7.7% of total sales. For many consumers, shopping online has become a more convenient option. Attracted by constant specials an...
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