David Berman of Durban Capital says traditional retailers are failing to compete with Amazon

Founder of Durban Capital, David Berman, stated on Friday that it is getting tougher for the traditional retailers to strive in a market that is slowly being consumed by Amazon. However, Best Buy and Target appear to be the two competitors which will continue to challenge Amazon in the league of retail business.

Amazon Has Been On A Hunt To Entirely Consume The Market Share

He further added that Best Buy and Target had also struggled to pose a strong competition earlier. At the moment, however, conditions are supportive for the retailers. In the recent past, Berman commented, Amazon has been on a hunt to consume the market share of the other traditional retailers. The strategy has pushed the retailers to indulge in a pricing war with Amazon and enhance investments in the online segment of their businesses.

According to Berman, Best Buy and Target have been successful in finding an impeccable balance in the online and brick and mortar components of their businesses. The retail stores enable multiple options for their customers to purchase goods with convenience. Such options include online ordering as well as picking up the delivery from the store or the warehouse. For Black Friday this year, both retailers have introduced lucrative deals for its customers that are to remain active for a few weeks.

Berman also highlighted that other retailers failed to evolve with the changing market, that turned into a reason for their demise. Statistically speaking, he said, Amazon is growing at around 20%. Considering the size of Amazon’s business, the 20% growth marks a market share that is unparalleled for any of the other retailers. In the long upcoming times, it is likely to get even scarier for traditional retailers.

Berman’s Recommendation For Struggling Retailers

Berman’s recommendation for the struggling retailers including Kohl’s, Macy’s, and Dillard’s, is to offer greater discounts to the customers if they wish to stand a chance in the ongoing battle against Amazon. Berman also pointed out that Walmart has been performing exceptionally well in the league of retailers. A recent First Insight survey reported that 55% of the customers voted Walmart as their preferred store for shopping as compared to Amazon. The figure for last year was capped at 47% only.

Amazon’s market value of around $893 billion is unmatched by any of its competitors. While Amazon noted a 20% growth in its share prices this year, Walmart, however, printed a 28% rise in the stock market. Best Buy has had a largely optimistic 2019 with 52% gain year-to-date. But Target has still come out as a clear winner with a remarkable 89% gain in the past 11 months.