The overarching story of retail in 2020, the pandemic year, is that the big just got bigger. The biggest categories – food and beverage stores, general merchandise stores (with the exception of department stores), building materials and supplies dealers and electronic shopping – all got bigger and the biggest retailers in each of those categories went along for the ride.
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Because they were forced to, consumers’ shopping habits changed during lockdown and early signs are that shoppers will continue to favor the big retailers that they came to depend upon last year.
Amazon, for one, just reported its highest first-quarter revenues ever, not to mention it was its second best-performing quarter ever. The best happened the quarter immediately before in fourth quarter 2020. Amazon’s relentless march to retail domination, not just online retail domination, continues unchecked.
But there are early signs of hope for Main Street retailers. News from a wide variety of fronts – consumer sentiment and small business surveys and a coalition of 20 independent small business organizations taking their story to Washington legislators – suggests that the tide might be turning.
Shoppers are looking for an Amazon alternative
While Amazon is the first stop for upwards of half of online shoppers, way ahead of search engines like Google
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A survey conducted by Sitecore, a digital management software company, found that more than half of GenZ shoppers (53%) want to cut back on Amazon shopping, followed by 49% of Millenials. Further, 30% overall – 43% of GenZ and 37% of Millennials – feel guilty about shopping there.
On the other hand, GenX and Baby Boomers feel much less Amazon shoppers’ remorse. Only 36% of GenX and 25% of Boomers want to cut back on Amazon.
The reasons cited for wanting to break their Amazon addiction are low-quality goods (21%), better choices from other retailers (21%) and a desire to support other retailers (12%).
The later – desiring to find other worthy retailers to support – is something independent retailers can lean into, especially with the younger values-based shoppers, who are especially concerned…
Read More: Independent Retailers Must Keep Up ‘Shop Small’ Message As Their Best Hope