As Americans increased their borrowing in March, retailers hope this will result in increased sales. For retail planners of major supply chains, a big question is whether consumers will come back to the stores or get back to buying by going online. Online commerce is far outpacing storefront sales around the world, creating competition for traditional retailers. It is also creating a supply chain upheaval at brick and mortar stores. Walmart, Home Depot and others are trying to determine how to serve that online market as their own online sales are growing.
Moving truckloads of goods to stores is very different from putting together a lot of small shipments and parceling them out to buyers directly. Brick and mortar companies need to figure out how to make the logistics work without cutting into profitability. Many are testing the use of pickup centers in their stores, to see if customers can solve the logistics question themselves.
Source: The Wall Street Journal
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