Five big stores that are moving online
Pedestrians pass a Staples store in New York City.
To no one's surprise, online sales in the U.S. are continuing to steal a larger and larger share of the consumer market, and expected to hit $370 billion by 2017. Even though the overwhelming majority of stuff is sold offline, where you shouldn't shop for the latest Game of Thrones novel in your underwear, brick-and-mortar retailers are still doing everything they can to move into that still growing market. Here are five big stores that have said they are moving to become a bigger presence in the online market:
Staples is really feeling the pinch from online retail. According to its chairman, Ronald L. Sargent, online retail is the main reason Staples will close nearly 225 stores by the end of 2014. And with the closing of so many physical stores, Staples is trying to make sure it dominates the online office supply market. Already, online orders make up nearly half their business, and Staples now offers 500,000 products on its website, rather than the 100,000 offered just a year ago. It even acquired Runa, a tech company specializing in e-commerce personalization. However, investors might be wary of Staples' new direction, as its stocks fell 15 percent in one day when the company announced it would close stores.
Amazon is still the king of selling everything you could possibly want over the internet, but Wal-Mart, known for its gargantuan stores in real life, could be closing the gap. In 2013, Wal-Mart’s online sales grew faster than Amazon’s for the first time. Wal-Mart’s had to invest heavily to catch up to Amazon, acquiring 12 tech companies and building a presence in Silicon Valley. But even though Wal-Mart is growing faster than Amazon, it’s still a world away. Just look at the numbers: While Wal-Mart racked up $10 billion dollars in online sales over 2013, Amazon took in $67.8 billion.
The Apple Store might be the shiniest place in the mall, but Apple’s online store might be even shinier -- metaphorically, that is. That’s because Apple is the second largest online retailer in the U.S., right behind Amazon. Factoring in the App store, iTunes, and sales of Apple’s hardware at Apple’s website, Apples pulls in $18.3 billion in online sales. It’s not that Apple doesn’t still value it’s retail stores; they’re doing very well. But for the first time in Apple’s history, one person is being put in charge of both the online store and the retail stores, which is supposed to bring more collaboration between the two entities. As it is now, Apple’s online and retail aspects are both extremely successful, leaving Apple in a pretty sweet spot.
According to its CEO, Best Buy is now an “online first” retailer -- as opposed to being a "showroom" when shoppers would browse Best Buy first, and then actually buy their electronics online. They’ve even hired a handful of tech people to update their decade-old (yup, decade old) website. They’ve also instituted a loyalty program that works with their website and started a big-data mining project called Athena to get customer information for a more focused experience. Perhaps most notably, they’re using innovative methods to attempt to get products to shoppers faster than Amazon. This is all in an effort to double their online sales, and hopefully compete in a market that may have left them behind.
With the public relations fallout from a huge data breach as well as an employee rant going viral on Gawker, Target is in a pretty bad place right now. But the company is hoping a push toward online retail could help turn things around. It’s experimenting with Google to deliver same-day shipping, and it’s significantly expanded its online subscription service. However, if the anonymous employee rant is anything to go by, they have a long way to go.