Thursday, February 19, 2009
Tech Ticker: More Retail Carnage.
Here is an interesting video clip about the carnage affecting major retailers in 2009
I'm seeing a very interesting trend here. The mainstream press continues to beat the "depression" drum; Brick and Mortar retail is in real turmoil; The Consumer's discretionary spending is not happening to the degree it needs to help these large businesses stay afloat and yet Amazon and Buy and other ecommerce pure-play sites are still growing.
There will be winner's and losers during this recession and online merchants will be among the winners. In fact I'm hearing from many 3rd party sellers that they are continuing to show stronger sales then they anticipated.
Spending is down and those companies that over-built or have huge overhead are not able to manage the sales downturn, many of them are too heavily in-debt to survive this turmoil. Small merchants on the other hand are not leveraged to the hilt, they have access to customers on their own websites and at marketplaces like eBay, Amazon, Buy.com and the smaller sites.
People are still spending but the big guys are the ones taking the hits. Smaller players are getting access to product that is being liquidated and are able to actually grow during this downturn.
2009 will be a tough year for the Brick and Mortar and Click and Mortar retailers but 3rd party merchants may be the lone bright spot in this terrible retail environment.
Just my 15%