How American retailers have adapted to the Amazon effect

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How American retailers have adapted to the Amazon effect
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  • 📰 TheEconomist
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Just a few years ago there was talk of a 'retail apocalypse'. Things have turned out rather differently

Yet even as normality beckons it is ever clearer that the pattern of spending has been transformed. One change is well-known: a lift in the level of e-commerce. The other is less familiar. An industry that was supposed to have been annihilated by Amazon has bounced back.

Things have turned out rather differently. The pandemic has certainly sped up the shift towards e-commerce sales, which have risen from 14% of the total in 2018 to 20% this year according to JPMorgan Chase, a bank. Although the pace of growth has slowed in the past few months there will be no return to the past.

Behind these numbers there are three types of fightback. First, the biggest retailers have embraced the digital world. This week Walmart predicted that its global e-commerce revenues would reach $75bn for the full year . It has made a big push in hybrid types of shopping that involve online activity but harness its stores, such as “click-and-collect” and online memberships. Target has promoted a similar service and digital sales now make up almost a fifth of its total.

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