Tuesday, September 11, 2018

Retailers under pressure despite recent gains

Retail Dive
While the notion of a retail apocalypse has been overplayed, so is the idea of an enduring retail bounce, according to the Financial Times.

Much of the reinvestment cited in the report involves retailers' moves to boost their e-commerce and omnichannel sales, which costs money in the near term but also pressures margins in light of the ongoing expense of fulfillment for digital sales. Those sales these days account for a disproportionate share of total retail sales growth, with U.S. e-commerce growth stoking nearly half (46%) of total retail growth over the past year, which is more than 15 percentage points since late 2014, according to data from global business advisory firm FTI Consulting emailed to Retail Dive. And that is often at the expense of brick-and-mortar sales.
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