Times have been tough for retailers lately. Instead of getting a boost from lower gas prices and unemployment, the big-box stores have gotten hammered as Americans’ shopping habits shift to the online channel.
As Amazon.com (NASDAQ: AMZN) convinces more consumers to join its Prime loyalty program with free two-day shipping and builds out services like Prime Now, which offers delivery in as fast as one hour, it’s become harder for brick-and-mortar retailers to compete. According to analyst estimates, Amazon captured 51% of applicable growth in retail over the holiday season as traditional powerhouses like Wal-Mart Stores and Macy’s reported declining profits. Wal-Mart and Macy’s were also among a slew of retailers, including Kohl’s and Sears, to announce store closings shortly after the holiday season.
