The Evolving State of the Retail Sector
Threats to the old retailing model are real, yet most of the pain in the sector is likely in the rearview mirror. Online sales continue to grow as a percentage of total sales, buoyed by rapid delivery reaching a greater share of the population. In large metro areas, where warehouses are established, and large e-commerce companies have logistical networks that enable same-day delivery, further penetration of online sales is expected to slow. As companies like Amazon and brick-and-mortar stores with a large online presence continue to create more efficient delivery networks in smaller markets, the impact of online penetration is also going to be relatively inconsequential relative to the changes that occurred over the past few years.