Can the Traditional Chains Beat the Likes of Amazon?

WASHINGTON, D.C. – Kevin McGowan, President of McGowan Corporate Real Estate Advisor, says that healthy retailers are adjusting their portfolios to react to e-commerce. As the industry contracts, retailers like Kohl’s and Target are investing in stores to grab market share. McGowan says that there’s an estimated $2.5 billion in sales available to remain in competing retailers, if you survive. But can the traditional chains beat the likes of Amazon? That’s really the question, because as the competitors start to disappear, who is going to take the spoils? “Approximately 20% of retail good are sold on the internet, and that number is growing,” says McGowan. “Amazon is selling a significant number of goods at no profit. Think about that. If you’re competing with someone and they’re not even concerned about whether they make money on it, you’re going to have a hard time working against them.” McGowan also points out that the industry is starting to see reactions in Washington, D.C. to potentially do something about Amazon’s monopoly status, which is seeping into a variety of areas. “So, Amazon is focusing on revenue growth to maintain public market evaluation, and they’re entering into markets such as groceries,” he explains. “Physical stores are now in the Amazon purview. And as we all now, they have just purchased Whole Foods.” It’s not hard to understand why traditionally, the category of goods that has been most resistant to e-commerce is groceries. Says McGowan,…