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Wednesday, 19 August 2020

What We’re Really Seeing Is the Integration of Bricks and Clicks

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What We’re Really Seeing Is the Integration of Bricks and Clicks

“What we’re really seeing here is the integration of bricks and clicks,” says Cohen retail analyst Oliver Chen. “Target really hit the bull’s eye on their numbers. What stood out really was 195 percent ecommerce growth and using stores as hubs or fulfillment centers, particularly drive-up curbside pickup and reinventing the purpose of the store to integrate the whole shopping journey. As retail continues to evolve this whole fulfillment and stores plus digital will continue to be a huge theme.”

Oliver Chen, Retail and Luxury Analyst at Cohen, and Michael Baker, Managing Director & Senior Retail Analyst at D.A. Davidson Companies discuss how ecommerce and physical stores are integrating:

What We’re Seeing Is the Integration of Bricks and Clicks

What we’re really seeing here is the integration of bricks and clicks. Target really hit the bull’s eye on their numbers. What stood out really was 195 percent ecommerce growth and using stores as hubs or fulfillment centers, particularly drive-up curbside pickup and reinventing the purpose of the store to integrate the whole shopping journey. What’s happening is that America really values convenience and Target’s done a great job being America’s easiest place to shop.

Thinking about physical, mix with digital and instant gratification, same-day fulfillment has been a big deal. Customers want it all. They want physical, they want digital, they want groceries and hard lines. We’re also seeing this at-home revolution with home electronics doing really well too. These are all key themes. As retail continues to evolve this whole fulfillment and stores plus digital will continue to be a huge theme.

Ecommerce Is No Longer a Bad Word

The key is that ecommerce is no longer a bad word. If you think back a couple of years ago if you mentioned ecommerce the idea was to short all retail. It took some of these retailers a while to understand the investments in technology that needed to be made. But they’ve done it using the stores as assets instead of liabilities.

Again, if you go back maybe five years ago the idea was if you had a store you’re in trouble. These companies through their technology investments have really proven that’s not the case. I do believe that investing in technology to drive your sales and your earnings is certainly the right thing to do for these companies.