E-Commerce Strategy May Be The Key To Survival

Many established stores are struggling to keep up with the new online retail environment, but they acknowledge that it is essential for survival. It may come to pass that companies, which have been around for decades, will cease to exist if they don't alter their e-commerce strategy.

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For example, The Sports Authority could not keep up with Dicks Sporting Goods Inc DKS's online presence and went bankrupt. Additionally, Macy's Inc M has announced it will be closing 100 stores to regroup and redevelop their omnichannel approach. E-commerce retail sales grew 4.5 percent overall in Q2, and it is likely this figure will continue to increase.

"We operate in a fast-changing world, and our company is moving forward decisively," said Macy's CEO Terry J. Lundgren in a news release. "This involves doing things differently and making tough decisions as we position ourselves to serve customers who have high expectations."

The change can be made successfully, as Nordstrom, Inc. JWN displayed with their recent Q2 results. Nordstrom.com sales grew 9.4 percent year-over-year to $683 million, just a few months after the company announced heavy mobile investments to boost its e-commerce business. It appears to be working; Nordstrom's stock is up 30 percent in the last month.

With e-commerce retail sales now accounting for 8.1 percent of total sales, an online presence and strategy has been more important than ever.

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