Which Brick-and-Mortars Can Contend With Amazon?
We believe home improvement and auto-part retailers are among the best protected.
Zain Akbari: Although Amazon has dramatically disrupted the retail landscape, we believe not all sectors are equally vulnerable to the digital juggernaut. In an Observer titled “Up the Creek but With a Paddle: Retailers That Can Succeed Despite the Age of Amazon,” we update our proprietary framework evaluating brick-and-mortar retailers’ standing in an increasingly multichannel world.
Our proprietary framework highlights immediacy of need, customer proximity, difficult-to-digitize business models, pricing dynamics, and the store experience as areas from which conventional retailers can derive enduring protections against the digital onslaught. Although we believe Amazon and the rest of e-commerce have significant room for future growth, we expect customers’ channel decisions will vary based on the situation, product, and their personal circumstances.
Zain Akbari does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.