How Retailers Can Survive in an Amazon World

Bricks and mortar retailers that offer a combination of specialisation, convenience, and experience are best positioned to compete with Amazon 

R.J. Hottovy, CFA 16 July, 2018 | 8:09AM

Amazon e-commerce retail retailer online web tech e-retailer clothing consumer goods

We've long held the belief that those physical retailers that offer a combination of specialisation, convenience, and experience were best positioned to compete in an Amazon (AMZN) world.

It's not easy for a retailer to successfully blend each of these qualities. We believe those players that can combine a specialised product assortment – including retailers that offer unique, often hard-to-ship products and in-store personnel that would be hard to replicate; an integrated, convenient approach to ordering, fulfilment, and logistics across all channels – in-store, mobile, and online; and experiential retail environments are the best positioned to at least keep Amazon at bay, at least over the immediate future.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Amazon.com Inc2,878.70 USD4.35

About Author

R.J. Hottovy, CFA  is a director of equity analysis with Morningstar.

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