MIAMI—There's a lot of talk about the Amazon effect. How real is it? GlobeSt.com caught up with Terrence Hart, director of Retail Leasing at Franklin Street, to get some straight talk.
GlobeSt.com: What single factor had the biggest impact on retailers?
Hart: There is a reason why Amazon has now become the largest retailer in the world by a large margin over any other operator. Amazon was the first to capture this new generation of shoppers who value their personal time and comfort over money and status.
Also, the lack of sales tax across state lines, and the freedom of shipping to your home for no charge, makes the brick-and-mortar experience unnecessary for daily consumer needs. This “Amazon Affect” had an enormous impact on soft goods retailers that sell basic commodities.
GlobeSt.com: What is driving the shift in consumer shopping habits?
Hart: This new world order shows that retailers are waking up to the fact that shoppers value their time just as much as they value their money. Retail shopping used to be driven by big name brands and designer labels.
Today's consumers care more about enjoying the shopping experience than they care about the price of the product. Shoppers also need to see the intrinsic value in what they are buying. For example, retailers like Toms' Shoes or Starbucks are successful not only because they have a good product, but also because they do a great job of highlighting their community impact and philanthropy efforts.
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