Online retailing flourishing in US
In a speech at Shop.org (part of the National Retail Federation) the chief executive of Macy’s, Terry Lundgren, admitted he had initially questioned the appetite of consumers to purchase clothes and shoes online. But having tentatively made the move online in 1996, sales have grown from $30,000 the first year to an impressive $1 billion this year.
Over this period Lundgren has had no qualms about investing a total of $300 million on the group’s online infrastructure. What has helped justify this expenditure is the return-on-investment calculation, with Lundgren stating that for every dollar that shoppers spend online with Macy’s, it influences $5.77 spent in its store over the following 10 days. This highlights how beneficial retailers are finding the deployment of a multi-channel strategy with all the channels fully integrated.
Still in the US, although Amazon.com remains a non-store operator the expansion of its internet grocery business signifies the increased willingness of shoppers to buy food online in the States. The online behemoth announced this week that it is to expand its grocery service to all parts of central Seattle within the next three months.
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