The close of “nonessential” business doesn’t affect them and they can remain fully operational. 🔐
Already a scourge to small and mid-size retail and e-commerce businesses, major players such as Amazon, Walmart and Target are poised to come out of the coronavirus shutdown in an even stronger position than they were in before the pandemic upended normal life.
For categories such as apparel and beauty, Lipsman thinks the boost Amazon, Walmart and Target are seeing for those items is more temporary and based on necessity, but that doesn’t mean smaller mid-market and specialty retailers can wait months for shoppers to come back to them. Yet another thing Amazon, Walmart and Target have going for them is the ability to maintain at least a good portion of their marketing spend.
There’s also been the revelation of hoarding tendencies among the panicked public, making clear some issues in supply amounts. Still these are issues that any other retailer at this point would surely be willing to unburden Amazon and Walmart of. Otherwise, the coronavirus now sweeping the U.S. presents little but opportunity for companies with the means, namely substantial cash on hand, to weather.
So beyond gobbling up a vast majority of the consumer spending lost by other retailers, particularly those in the mid-range, like the stores often found in malls across the country, and direct-to-consumer, it’s entirely possible that Amazon and Walmart will seize other opportunities the pandemic has created. This potentially includes a glut of available talent from the start-up world and maybe even acquiring a brand or platform they’ve been eyeing.
“If I’m a direct-to-consumer brand today, I’ve resisted Amazon, because I want to control the branding, to control the data, but funding has dried up,” Lipsman went on. “Now they can’t buy their way to growth and the whole customer acquisition equation is suddenly changing.” He also noted that he’s adding brands in the consumer packaged goods space to his text-to-buy platform “as fast as we can,” and is in talks with companies in the beauty and fashion space, with an increase in interest since the coronavirus really hit the U.S. at the start of March. As for Walmart, Normandin is actually launching Dirty Lemon in the retailer nationwide in just a few weeks time.
One is the sheer fact that smaller businesses will have a much easier time comping for growth over the next year, which any investor, public or private, essentially insists upon quarter after quarter. Amazon and Walmart will be up against some serious numbers, and it could give them a bit of trouble in the stock market.
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