Amazon is worth around $250 billion dollars, which is probably why they call it the online retail giant. Just to put that in perspective, Walmart is worth $230 billion. Macy’s is worth 12.8 billion. They all range in the billions but they are millions of worlds apart in their future plans.
Macy’s announced the closure of 68 store locations, among the 100 projected store closings. Along with the store closings comes a cut of 10,000 jobs. Kohl’s, Macy’s biggest rival, announced sales were down 2.1 percent from the previous year’s holiday months. Sears has also announced that they will be closing 78 Kmart locations, and 26 flagship retail locations. Also, Sears has agreed to sell the name brand Craftsman to Black and Decker for $900 million. Macy’s shares dropped 14 percent, followed by Kohl’s 19% share drop.
This is followed by a deep trend of online shopping that seems to have overtaken the retail market by force. With less focus on Black Friday sales, instead coming to expect deep discounts and constantly changing merchandise or large selections, online sales have increased significantly. In 2015, holiday shoppers spent a total of 91.7 billion dollars online, with 40 percent of those purchases being from Amazon alone. 2016 didn’t bring any changes to this trend, pulling in more than $110 billion dollars, with a little beneath 40 percent being solely ordered on Amazon.
On the other hand, Amazon is really the online retail giant, doing the exact opposite of brick and mortar retail stores. Amazon is adding jobs, and not just a few but a whopping 100,000 jobs in the next 18 months. Fifteen miles away form one of these blossoming Amazon warehouses, is a run down old Owings Mills Mall, rubble beneath the dying brick and mortar retail empire as the building has already started being demolished.