retail news in context, analysis with attitude

Nielsen is out with new research suggesting that “Amazon’s dominance in digital retail, specifically for CPG products, is slipping. In fact, over the past two years, established brick-and-mortar stores have taken share back and closed the competitive gap.”

The report goes on:

“While it's no secret that traditional brick-and-mortar retailers have ensured e-commerce is part of their overall strategy, Nielsen data shows that some of the biggest brick-and-mortar players have turned strategy into reality, and have posted incredible growth along the way. In fact, key retail players like Walmart, Kroger and Target have grown their online customer base - all by at least 90% more than Amazon - over the past two years … These merchants have succeeded, in part, because they’ve embraced the click-and-carry model where consumers buy an item online and pick it up at a physical store. In fact, we estimate that the share of click-and-carry sales grew from 4% to 11% of all CPG e-commerce sales in just two years.”
KC's View:
While I think this is a good perspective on how the competitive landscape may be shifting a bit, it really shouldn’t strike anyone as a surprise that companies like Walmart, Kroger and Target have gotten better at e-commerce, reclaiming some market share. It always was going to happen … and certainly Amazon was prepared for these companies getting better.

Remember - none of this is static. As these companies continue to improve, Amazon also will continue to innovate. The question becomes, which company innovates the fastest and the most successfully in ways that matter most to the shopper?

To some degree, our next editorial story - about another study - poses at least one answer to that question.