NEW YORK-A report authored by Goldman Sachs retail analysts indicates that store-based retailers are “competing well” with strictly Web retailers as e-commerce continues to grow in size and impact on U.S. retailing.
“In recent years,” the report said, “online sales growth for the largest store-based e-commerce retailers has outpaced overall e-commerce market growth.” In addition, “even retailers with relatively protected business models are stepping up investment in their direct and omnichannel capabilities.” The report found four areas of opportunity for the store-based retailers:
Retailers are leveraging their scale, brands and distribution through their stores, and investing in omnichannel capabilities.
Addressing the issue of price transparency will enable retailers of branded goods to relieve the pressure on their margins by narrowing the price gaps with Amazon and other “credible online competitors.”
Retailers are strengthening their connections with shoppers, wherever they shop, through digital marketing and customer relations management.
Retailers are also investing in proving to branded-product vendors, who have developed the capability of selling direct, that they can still be a partner in showcasing their products.
The report also said, “E-commerce remains the most disruptive factor for the retail industry today.” Also, the Goldman Sachs analyst team said e-commerce growth has accelerated in 2013, and is likely to continue to grow sharply, even off a larger base.”