The Facts About Online vs Offline Stores In 2018

Some of the biggest brands out there made the move to online retail a good few years ago, and although the infographic created by Red Brain shows they have had some incredible sales, it is nothing compared to what their sales are in their physical stores.

Although people appreciate a brand being online, they are not ready to see their favourite brands disappear from the high streets completely.

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CDs are dead but Vinyl Lives

A likely outcome of this is the only CDs left will be those from superstars with guaranteed audiences; such as Beyonce and Taylor Swift. Swift did sell over 500,000 CDs of her Redemption album. That is nothing compared to digital; where Swift sold 925,000 copies of her Reputation album in three days last year.

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Is Target Really Profiting from Digital

Teaming up with high-end grocers like Lidl and Trader Joe’s for Shipt delivery is a smart move for Target. Other logical moves will to add brands like CVS, Walgreens, Home Depot, Lowe’s, Rite Aid, Albertsons, Nordstrom, Aldi, Trader Joes, Safeway, Publix, and Best Buy to the Shipt ecosystem.

More importantly, Target is well positioned to cash in on today’s retail environment and the transition from brick and mortar to delivery. If you want to profit from the growth of grocery delivery, Target is one of your best bets.

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Who is buying Supervalu?

Even if Supervalu keeps operating the distribution centers its new customer might be Amazon or Instacart.
A strong possibility is that Supervalu will get out of brick and mortar supermarkets and concentrate on selling groceries to delivery services. Its’ network of distribution centers is well-positioned for that eventuality.
Supervalu’s financials explain why Jeff Bezos is so interested in the grocery business. Grocers like Supervalu have a very strong cash flow, and Bezos loves cash.

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Walmart wants to bring Grocery Delivery to 40% of Americans

Likely responses to Walmart’s offensive might be Amazon’s acquisition of a traditional grocer like Safeway or Winn-Dixie, or Amazon or Target partnering with traditional grocers such as Publix. Kroger might respond by buying InstaCart and joining Google Shopping Express.

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Is UPS Making Money?

Currently, I’m leery of both UPS and FedEx because of the danger they are in, in a changing retail market. Threats to these companies abound from both new businesses and new technologies.

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Is Target Making Money or Doomed?

The next logical step at Target should be a strategy of acquisition. Other brands are cheap because of the retail apocalypse and Target certainly has the cash.

The best target would be an online retailer or the online operations of struggling brick and mortar retailers. An interesting acquisition for Target would be JC Penney’s (NYSE: JCP) online operations.

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TJX: Department Stores that make money what’s up with that?

By shrewdly taking advantage of the opportunities created by the retail apocalypse, TJX has grown into America’s dominant department store brand. It is liable to remain in that position for a long time to come because of the sheer ineptitude of the competition.

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Has the Incredibly Shrinking Target Turned Around?

After months of dropping, Target’s revenues suddenly displayed a small but noticeable increase of $26 million during Second Quarter 2017. That does not make up for the $4.23 billion revenue drop between July 2015 and April 2017, but it is an improvement.

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Why Haven’t More Retailers Gone Bankrupt?

Some observers even point to the lack of bankruptcies (or major bankruptcies) to cast doubt upon all the whole proposition of a retail apocalypse. These critics are mistaken; the lack of bankruptcies does not make the apocalypse fake news. The Dallas Morning News estimated that 5,377 chain store closings had been announced as of May 14, 2017.

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