Amazon is decimating many American retailers, but one bricks and mortar chain is fighting back strongly and showing to Australian retailers that the e-commerce behemoth can be challenged. Wal-Mart Stores, the world’s largest retailer, is once again thriving after initially struggling to fend off Amazon. Wal-Mart’s turnaround, aided by its US business head and former Woolworths executive in Australia, Greg Foran, may provide clues for Australian retailers bracing for new fierce competition from Amazon. Investment in internet sales platforms, retraining staff, paying higher wages, revamping the layout of stores and shutting unproductive shops helped lift Wal-Mart shares to a record high this month. Wal-Mart’s share price has surged 42 per cent this year. In contrast, American department stores such as Sears, Macy’s, J.C. Penney, Kmart, Target and Kohl’s are struggling to stay afloat against Amazon. US big box retailers have shut numerous shops, axed thousands of employees and suffered big share price declines. Mr Odland warned Australian stores that couldn’t make the transition against Amazon that they would be in financial trouble.
Source: www.afr.com
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