Good, then bricks and mortar businesses will be better able to compete.
We believe that a combination is ultimately going to be the best working solution. Walmart is juggling a balance to find the right combination and augment the brick and mortar sales. In apparel, we have customers who order online but typically they've already shopped with us and when you do order online the order goes to a sales person in the store who pulls your order and communicates with you by email or phone. The convenience of online and the service of a store.
Amazon was built on service, but they just can't provide it anymore. Their answer is, if you complain, give you a $20 credit or something. They're working very hard on brick and mortar concepts.
Some products are perfect for online. Books were, CD's are. Staples like laundry detergent and paper towels are but the shipping is expensive to deal with. Grocery shopping online works well, but no one has figured out how to absorb the cost or charge for it. We want things for free and don't want to pay for added services. Free Shipping is the mind boggling trend. We know it's not free. Amazon Prime charges the annual fee plus has higher prices, but then they'll ship it free. Now it's pay me $14.99 per month and I'll deliver all your groceries for free....well, almost...you should still tip.
I think apparel is a lousy online product. Clothes don't look the same on you as they did in a picture. They often don't fit. What percentage of people shoe shopping, love the first and only pair they try on? I've tried to order shoes online because of my size not being widely stocked, but I returned two out of four pairs and not really thrilled with a third pair. Furniture sales online surprise me. Then one product I was completely wrong on. I thought by now all phones would be sold online. I think Sprint, Verizon and AT&T thought that at times. However, phone stores remain extremely successful. People want to buy, get it set up, and walk out with it working.
I believe in brick and mortar but it must adapt. Also, businesses must examine and question what they're doing carefully. Now that Signet Jewelers own Kays, Jareds, Zales, Peoples, and more they're concluding that many malls no longer make sense and that stand alone Jewelry stores work well. People go to buy jewelry, don't purchase it on impulse because they see it when walking by. Ross, TJ Maxx and Marshalls figured out early that they could be across the street from the mall at half the cost and do very well. While Location, Location, Location has always been preached, companies are redefining what it means. I'd say roughly 40-50% of the malls are worth paying their rent. Now, the malls looking good today are working hard to create an experience by adding entertainment and amenities.
There's also a lot of turmoil that the manufacturers are going through right now. Sell on Amazon or not? If so, how to price? If you discount it online to a rate stores can't afford to sell, they you won't keep store business.
Amazon's profits are not coming from things they're selling today. Coming from Prime, coming from what they charge third party sellers, coming from their Cloud.