Are shoppers being pushed online as much as eTailers are pulling them in?
Earlier this year, online sales overtook bricks and mortar, and internet retailers have absolutely no interest in relinquishing the reigns anytime soon. Amazon.com and other retailers
The Seattle retailer plans to add 120,000 seasonal positions, up from 100,000 last year. By comparison, Target Corp. is looking to hire 70,000 additional workers in its stores, the same as last year. However, Target is looking to add 7,500 additional workers for its distribution and fulfillment facilities, up from 6,500 last year, according to a spokeswoman. Macy’s Inc. is planning for 83,000, compared with 85,000 last year. Department stores, specialty shops and big-box retailers have struggled recently, hurt by falling foot traffic as shoppers increasingly turn to Amazon and fast-fashion options such as Hennes & Mauritz AB.
Source: Amazon to Add 120,000 Workers for Holidays – WSJ
If there was any doubt as to who is the king of the hill now, just look to the Mall developers that have thrown in the towel and admitted defeat ( FORTUNE: Major Mall Developer Says It Will Close 72 Shopping Centers on Thanksgiving ).
The motivation for the consumer’s movement towards online shopping is clear: convenience, choice, savings, etc . .all part of our Connected Society thematic. But on the other hand, there is something to be said for the holiday shopping experience — the music, decorations, the Starbucks red cups! To some extent part of the “American Experience” for many.
So what else could be driving people more to Amazon, Target.com, Wal-Mart.com and other e-tailers? How about these recent events:
- Munich attack: teenage gunman kills nine people at shopping center
- 5 Dead in Shooting at Mall in Washington State
- Police charge alleged Willowbrook Mall bomb hoaxer
- 8 people injured during stabbing attack at Minnesota mall
- Houston strip mall shooting: 9 wounded, gunman dead
It doesn’t take much to see another underlying factor in the move towards online. The key to following a thematic investing approach is to connect the dots — to take a step back and look at the full landscape of what’s really going on and see what the underlying trend — or “thematic” as well call it — that’s driving the shifting behavior. When we add in our Safety & Security thematic lens to this equation, it becomes clear that as much as retailers such as Amazon.com (AMT) and Wal-Mart-owned Jets.com are pulling shoppers online, there is a factor pushing them online and that’s personal safety and security.
For subscribers to our Tematica Investing newsletter and our consulting clients that receive our Tematica Insights piece, it’s the connecting of the dots that helps them achieve success.
