E-Commerce Giant Amazon has “Redesigned” the Retail Environment

October 17, 2017

By, Alex Ferracuti


Amazon.com the all-in-one E-commerce giant has shaped the retail “game”, causing big box brick-and-mortar stores to either adapt or fold. Sears Canada was the next of the large retail giants closing shop, announcing last Tuesday (Oct. 10) it has received court approval to begin its liquidation process. After 65 years in business, the retailer plans to begin selling off its inventory Oct. 19; closing 74 full-line department stores and laying off 12,000 employees by early January. The past few years have been disconcerting for Sears Canada, losing a considerable amount of market share to Walmart, Costco and Canadian Tire as well as failing to adapt to changing consumer tastes – e-commerce.

Amazon has reinvented and reshaped the retail environment, designing an all-in-one online marketplace allowing users to order virtually anything from anywhere. Eliminating the middleman has earned Amazon.com a considerable price advantage it provides to its customers. The e-commerce giant has revolutionized today’s shopping experience, leading North American shoppers to prefer online shopping over in-store browsing. Analysts and researchers are attributing its growth and success to the beginnings of Sears, which had once changed the market similar to the online giant Amazon. Sears became the largest mail-retailer at its start, transitioning into physical stores after its success; very similar to Amazon’s slow transition from a dominant online retailer to the opening of physical locations. A question many are wondering is if Amazon will continue its exponential growth, or suffer a similar fate as Sear in the coming years?

With almost every major brick-and-mortar retailer experiencing declining revenue growth, and the consumer shift to online shopping; Amazon is postured to continue its sales growth and online market dominance. Due to holiday shopping around the corner, analysts and investors will anticipate the Q4 earnings release of major retailers. Amazon had 36.9% of the US holiday e-commerce market share in 2016, with Best Buy, Target, Walmart, and Macy’s having a combined share of 12%. As holiday shoppers shift towards buying gifts online, paired with Amazon’s already established online presence, big box retailers need to adapt to the new retail environment or suffer similar fates as Toys “R” Us and Sears.



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