Masters Of Their Domain

WHY DIGITAL BRANDS ARE KILLING IT IN ECOMMERCE. BY LAUREN JOHNSON

- Lauren Johnson

For decades, the retail industry stood strong. Retailers emerged fairly unscathed during the first wave of the internet in the ’90s because consumers still by and large chose to shop in physical stores staffed with employees that strived to provide customer service. So, it was business as usual with a small number of wary execs cautiously eyeing the growing shift toward ecommerce.

Those days are long gone thanks to Amazon and the latest tsunami of technology that makes it convenient for consumers to shop from anywhere via ecommerce sites and mobile apps. A quick glance through recent headlines shows why retailers are hustling to embrace ecommerce and become more digitally minded businesses: Toys R Us plans to close 800 stores this year as it likely begins to phase out its U.S. operations; Best Buy will shutter all 250 of its small retail sites that sell mobile phones; and Foot Locker plans to shut down 110 stores to focus on high-performing locations.

These recent moves aren’t just a shift to ecommerce. Publicly held brands also have to position themselves as cutting edge for investors to compete alongside Amazon, Alibaba and other ecommerce giants.