Retailers Best Placed to Profit from the Web

Some retail businesses like clothing and consumer electronics have seen sales slashed as as customers go online

Morningstar Analysts 25 November, 2013 | 7:05AM
Facebook Twitter LinkedIn

Retailers have become more aware of the different ways consumers shop. While some retail business models have been largely insulated from e-commerce competition, others like clothing and consumer electronics have seen sales slashed as as customers go online.

As consumers continue to become more information-hungry and connected in a digital way, we believe we will see new and innovative ways for retailers to reach their clients over the longer term.

E-commerce leaders like Amazon (AMZN) and eBay (EBAY) have garnered quite a bit of attention the past few years as the most disruptive forces to traditional retailers to emerge in decades. Although we believe that these wide-moat e-commerce leaders will continue to gain market share, many traditional retailers have responded through competitive countermeasures in 2013, including price-matching efforts, proprietary product offerings, online order fulfillment in stores, store-within-store partnerships with key vendors, and other omnichannel and mobile commerce investments. In this report, we‘ve developed a framework to assess which retailers are best positioned to compete over the long haul. While no consumer discretionary name is completely immune to e-commerce competition, we believe investors can identify potential opportunities across the broader retail space through a thorough examination of the current playing field.

SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk

To view this article, become a Morningstar Basic member.

Register For Free

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

Facebook Twitter LinkedIn

Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating Inc3,437.05 USD-0.35Rating
eBay Inc67.39 USD1.23Rating

About Author

Morningstar Analysts   -

Audience Confirmation

By clicking 'accept' I acknowledge that this website uses cookies and other technologies to tailor my experience and understand how I and other visitors use our site. See 'Cookie Consent' for more detail.

  • Other Morningstar Websites
© Copyright 2021 Morningstar, Inc. All rights reserved.

Terms of Use        Privacy Policy        Cookies       Modern Slavery Statement