We’ve all heard the dire predictions that Amazon is killing retail, but not all experts agree. Writing for Barrons, Cowen analyst Oliver Chen says there are retailers who are continuing to do well. He and other analysts say there are four factors separating success from failure:
- A fast, customer-focused digital strategy
- Competing in categories with good personal interaction
- In-store experiences that still matter
- Strong brand
Mr. Chen is particularly bullish on three retail chains: Tiffany & Co., Ulta Beauty and Ross Stores. In particular, Chen and his colleagues expect Tiffany to exceed expectations.
On Ulta, their take is:
ULTA is able to outperform industry growth given their robust product offering – being able to offer beauty and newness at every price point, across categories
They go further to say that: “ULTA’s loyalty program is critical to their past and future successes. The program is easy for consumers to join, offers a compelling value proposition, and drives future engagement with the brand”.
On Ross, Cowen analysts see that, even though they serve a small segment for the total market:
[Ross] can continue to comp as they grow – and we note that California (being the oldest market), continues to comp at least as well as the chain average, and in some cases, these stores comp above chain average.
So, perhaps the predicted demise of brick and mortar retail isn’t really here, at least for some chains.
Read the full post here.
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