The retail industry is in a state of transition like none it has ever experienced, and Amazon is one of many factors driving that change. But how exactly has Amazon changed retail? And how should retailers respond to this change? To find the answers to these questions and more, Bluecore and NAPCO Research conducted an online survey of retail executives in May 2017.
Highlights from the findings include:
- Although only 36 percent of retailers saw e-commerce grow by more than 10 percent from 2015-2016, we are hardly facing a retail apocalypse. Rather, we are seeing a retail shakeout caused by five factors: The 2008-09 recession, the decline of department stores, changes in shopping malls, digital and Amazon.
- 56 percent of retailers believe Amazon’s presence in their markets has increased in the past two years, signifying a new threat that many retailers didn’t see coming.
- Nearly 60 percent of retailers now consider Amazon at least somewhat of a competitor.
- Most retailers know they need to collect customer data to provide some sort of personalized experience (and 72 percent have made changes in an effort to do so) because Amazon does this especially well, but how to accomplish that goal isn’t always clear. As a result, most retailers today do not have a clear strategy around how to respond to many of the consumer expectations created by Amazon.
- Most recently, retailers have tried a new strategy that doesn’t involve competing with Amazon: 30 percent of retailers now partner with Amazon to some extent.
Interested in learning more? Download the full report, attached below.