M - Why Online Retail Might Be the Grinch That Steals Department Stores' Christmas
What should be the most wonderful time of the year for retailers might not be so for those already facing flagging sales. One might assume the holiday shopping season is probably when suffering retailers have the best shot at recovery, but that's not necessarily true in a world in which online shopping is luring customers out of the stores and into their armchairs, where great deals are just a smartphone click away.
Recent reporting from ShopperTrak research showed a 6.2% decrease in in-store traffic at retailers on Black Friday. And CNBC, citing Adobe Analytics data, reported online sales on Cyber Monday reached a record $9.4 billion.
What this means is that online retailers like Amazon (NASDAQ: AMZN) and brick-and-mortar shops with a strong online presence, such as Nordstrom, might become Dr. Seuss's Grinch Who Stole Christmas for other, more traditional retailers. Those at risk include Macy's (NYSE: M), Kohl's (NYSE: KSS), and J.C. Penney (NYSE: JCP).