Sears Holding Corporation
Sears Holdings Corporation (NASDAQ:SHLD) has been slow to follow suit, but it is also encouraging to see the growth of its community on the web. Earlier this year, it celebrated its one millionth MySears community member. It also has more than 1.5 million ‘likes’ on its main Facebook Page and 22,000 followers on its main Twitter page, all of which are continuing to grow. By expanding its reach into the far-reaching social networking platforms, Sears can benefit by drawing consumers to its online store as well.
Sears also has a ‘buy online – pick up in store’ policy, which seems to be working. Many thought the move would drive traffic and ‘impulse’ buying once customers were in the store. While this is true, the more beneficial aspect to it is that customers save a bundle on shipping. This allows the company to be more competitive in pricing. The company has recently introduced the ShopYourWay max, which allows for free online shipping if you pay a $79 yearly fee. Many consumers enjoy free shipping, and Sears has found a way to profit from it. With the investments in their online retail space and social networking Sears has finally started to turn the page now, and with the growth being seen the bottom line should continue to improve moving into 2014 and beyond.
Amazon.com Inc.
Don’t kid yourself — Amazon.com, Inc. (NASDAQ:AMZN) is above all a retail company. What is intriguing is that as retail giants such as those previously mentioned have plowed ahead to make their online shopping presence as convenient and enjoyable as in-store, Amazon is trying to step offline.
With its plan of creating a brick-and-mortar store, the drawback will be that pesky problem of overhead. The key to success will be moderation and plenty of steady planning, research, and implementation. It cannot rush into gobbling up real estate and suffer the same fate as companies that grew too fast and were left holding the bag when business slowed (Starbucks anyone?).
That being said, it is the mindset that keeps Amazon competitive. By continually asking, “How can we access more consumers,” it is constantly coming up with new strategies that will ensure future profitability. Amazon is the staple for online retailing, yet if there is money to be made by accessing consumers offline and capturing that market then they are doing well by their investors by investing in an off-line presence down the street from you. Wal-Mart Stores, Inc. (NYSE:WMT) has been incredibly successful by utilizing the brick and mortar stores. If Amazon can capture a fraction of the market share from Wal-Mart expect profits to vastly increase from current levels.
The trend continues: people will stay in their online shopping sanctuary where power lies in a few simple clicks and home delivery. Millions of convenience-seekers just find a few clicks of the mouse a better alternative to gallons of gas, crowded aisles and indifferent cashiers. The companies that are improving this process will succeed and are a good call for investors.
The article Which 4 Big Box Retailers Understand the Internet? originally appeared on Fool.com and is written by Casey Walters.
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