CouldAmazon One Day Bring an End to Department Stores?
Amazonis an online retailer that has increasingly become a threat todepartmental stores. In the U.S. apparel market, Amazon has beenindicated to take an increasing share, which has sent worryingsignals to the departmental stores (Banjo, 2016). Generally, internetretailers such as Amazon have been reported to have addedapproximately $27.8 billion to the revenues realized from the sale ofapparels since the year 2005, while departmental stores have beenindicated to have lost approximately $29.6 billion within the sameperiod. This has portrayed departmental stores to be on the losingend. From the progress being made by the online retailer, Amazon,there is a likelihood of departmental stores being brought to an endone day.
Mostof apparel consumers feel free to make their purchases online, whichoffers Amazon an upper hand. Indeed, approximately a fifth of theUnited States consumers now regularly make clothes purchases onAmazon (Banjo, 2016). Most consumers who make clothes purchases fromthe online retailer argue that convenience, ease, and prime freeshipping make them buy apparels from the online store. This sendstrouble to the departmental stores as they have been seen asinconvenient to some clients. For instance, their physical locationmay be far-a way located or in an area that customers would noteasily access.
Amazonis projected to triple its shares of the United States apparel marketover a period of the next five years (Banjo, 2016). This implies thatAmazon will have the likelihood of increasing the number of clientsthat it will host in comparison to the departmental stores.Therefore, it can be argued that Amazon may put departmental to anend one day given the remarkable progress it has shown over years.
Banjo,S. (2016). Amazon Eats the Departmental Store. Bloomberg.Retrieved fromhttps://www.bloomberg.com/gadfly/articles/2016-09-20/amazon-clothing-sales-could-soon-top-macy-s