The advent of the internet has changed everything…
It may be the single most important invention of all time – even rivaling the wheel in its importance.
It’s made our world bigger and smaller at the same time – and it’s done wonders for the world of business.
However, something we weren’t really expecting was the impact the internet would ultimately have on retail companies…
Once thought of as another revenue stream for some of the biggest companies on the planet – the internet, in a cruel turn of events – seemed to turn the money faucet off at the tap for some, essentially becoming a nail in a coffin we didn’t know existed.
Numbers show – the internet is essentially KILLING some of the biggest retail chains in history, like Sears (SHLDQ) and JC Penny (JCP) – something nobody ever thought would be possible.
But the real question is…
Is retail REALLY dying?
Or is it just antiquated business practices that are the death knell of these once titans of retail?
The answer may surprise you…
Did you know that in 2018, somewhere in the neighborhood of 3,000 NEW brick and mortar retail stores opened their doors to the public?
It’s true – not only were there around 3K new stores – but since opening – the industry has continued to have positive growth in many of the biggest global markets.
And while many were calling the priest to perform the last rites on some of those companies that seemed to be on their last legs – many of them have not only pulled through – but now look to be on their way back to full health.
For a minute there, it seemed like Amazon (AMZN) and a few other online retailers were going to put some brick and mortar companies like Best Buy (BBY), Home Depot (HD), and Wal-Mart (WMT) out to pasture…
But somehow, through strong online sales and changing business practices, they are experiencing a resurgence and are starting to get back into the race.
It was only a few years ago that many experts were saying retail wouldn’t make it to 2020…
Which gave birth to a new generation of online retailers, who were ready to catch all the profits that these dying stars would leave on the table.
Why?
Well, because just a few years ago, many pundits and “experts” were predicting that e-commerce would grab up to 50% of the retail business – so it obviously seemed like a no-brainer to start an online store front.
But the giants didn’t die. Even funnier…
Some of these retailers that started online? They’re actually opening some of their own brick and mortar locations.
Ironic, right?
Afterall, there’s a reason Amazon purchased Whole Foods.
So, why are brick & mortar stores still getting 89% of retail sales?
Well, there are a few reasons…
First, not everybody likes to shop online. There are plenty of people that prefer the old-fashioned way, and not only don’t like shopping online – but can barely operate a computer.
And these people still need to have a place to shop.
It comes down to knowing your customer base.
Another reason that retail hasn’t thrown in the towel yet?
Some people just want to go shopping. Shopping isn’t just about going to the store to buy something – it’s social. It’s something families can do together…
Shopping still has an emotional tie for some people.
And as long as going to the mall with your friends and family is still considered a social activity – then retail may never really die.
However, this doesn’t mean that retail is 100% safe.
The companies that are surviving the Digital Age have got to keep their finger on the pulse of where the business technology is going…
What works today may not work tomorrow.
And shareholders know this – take a look at the stocks of the companies that are on top. There’s a reason why people are still buying them…
But this is true of any successful sector of business.
One of the reasons I started the GorillaTrades system was because I was tired of trying to figure out what really made a stock “work.” I was tired of marginal success…
I wanted TRUE success.
I knew if I was going to really make money in the stock world I would need to quit guessing or trying to prognosticate.
The GorillaTrades system takes the guesswork out of it and really puts you on track to find that success in trading you’ve always wanted.
If you want to see how it works – please… consider becoming a subscriber today.
If not – I totally respect your “do-it-yourself” chutzpah…
Regardless, it may not be a bad idea to take another look at retail stocks…
They could be more lucrative than you were lead to believe.
“I like the old school, then I add the new school, and I got a concoction of greatness. I can’t miss; you can’t miss with that.” – Bernard Hopkins