Kate King of The Wall Street Journal tells her readers how these brick-and-mortar stores are thriving in the online world. King writes:
Online shopping is at a record high. For a change, shopping center owners aren’t threatened.
Americans bought $300 billion in retail goods online last quarter, with e-commerce accounting for 16.2% of all retail sales, according to data from the U.S. Census Bureau. That proportion is nearly back to peak levels in 2020, when many stores were closed and cash-flush Americans ordered Peloton bikes and sourdough starters from their couches.
Still, after years of worrying that e-commerce would decimate bricks-and-mortar stores, retail landlords now say the sector is stronger and more insulated from online competitors than even a few years ago. […]
Less than 2% of TJX’s total sales occurred online in 2023 and through the first six months of this year, according to a spokesman. Market capitalization at TJX, which owns several brands including T.J. Maxx, Marshalls and HomeGoods, still swelled 194% over the past decade to more than $130 billion, according to FactSet.
The discount chain attracts shoppers from across the income spectrum by creating a “treasure hunt” experience. It sources merchandise in limited quantities from 21,000 vendors in more than 100 countries. The strategy prompts hardcore shoppers to time their visits with the arrival of new shipments in the hopes of snagging heavily discounted designer handbags and clothing. […]
Even so, Garfield expects e-commerce to plateau at roughly one-third of all retail sales over the next decade.
“Retailers are going to have to be consistently evaluating their portfolio to make sure their stores are profitable,” he said.
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