Traditional Retailers Set Their Sights On Amazon

Amazon.com, Inc. AMZN has significantly disrupted the retail space over the past five years – undercutting prices and providing a fast and easy shopping-from-home experience to its customers. It has taken a massive bite out of brick-and-mortar stores' market share.

In order to keep pace with the e-commerce giant, many firms have stepped to up their online game in hopes of giving customers a similar experience to what they'd receive shopping with Amazon.

Changing Consumer Behavior

Discount super-store Wal-Mart Stores, Inc. WMT announced that it was closing 269 stores globally in order to cut down on costs and invest in its online shopping platform. The firm has struggled in recent years, but new investments in complicated robotics warehouse systems and a more user-friendly online experience are expected to help the store change alongside its customers.

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Not Just Online

Department store Macy's, Inc. M has embarked on a similar journey; the company has also had to close some of its least profitable stores in order to strike a balance between online shopping and in-store experiences. The firm said that many of its customers try things on in the store and later purchase those items online. In order to cope with this shift, Macy's is hoping to that fewer locations will help the retailer cut operating costs and focus on fulfilling online orders.

While online shopping is gaining popularity, many brick-and-mortar stores aren't ready to give up just yet on what sets them apart from Amazon. As they have the ability to draw customers in by providing a unique in-store experience, many firms are investing in high-tech gadgets to make their location appealing.

Companies like Nordstrom, Inc. JWN and Brooks Brothers are using Intel Corporation INTC's RealSense 3-D scanning technology in order to ensure that customers get a garment with the best possible fit. Nordstrom is able to scan customers' feet and provide recommendations about the most suitable shoes, while Brooks Brothers makes customized shirts and suits using the measurements provided by the machine.