More uncertainty is ahead for U.S. retailers in 2017, thanks to changes in the political landscape and consumer behaviour.
Following a year in which several bricks-and-mortar players made big strides on the web (Wal-Mart's acquisition of Jet.com, or Best Buy's three straight quarters of 24% online sales growth come to mind), the battle for second place is intensifying.
This shift toward digital is likely to reverberate through retailers' physical footprints, as they re-evaluate their needs for space.
Amid all of this change, it's becoming clearer that retailers need to take back control of their own destiny, so retailers expect to see more brands that relied on third-party retailers to sell their goods getting more hands-on.
Though data shows that Amazon gave up a tiny bit of market share this holiday season, its massive online lead over bricks-and-mortar retailers is indisputable. Yet as the fight for second place heats up, a second type of digital divide is taking shape.
According to data from Slice Intelligence, which scans shoppers' digital receipts, the top 10 online retailers accounted for slightly more digital spending than they did last holiday season.
Selling merchandise through a department store is a lower-risk, less expensive way for brands to grow their sales. Yet as these shops have become more promotional, labels including Michael Kors, Ralph Lauren and Coach are dialing back their exposure, in an effort to wean customers off discounts.
Starting in February, Michael Kors will sit out department stores' broad friends and family sales, and will stop accepting coupons at those locations. In a slightly different twist, Coach started removing its product from wholesale shops this year, and will have exited a total of 250 before mid-2017.
Outside of the handbag space, athletic wear companies like Nike, Adidas and Under Armour are building out their own network of stores, where they have more control over the way their brands are presented. At Nike's new Manhattan store, shoppers can test running sneakers on a treadmill, or try new basketball shoes on a court.
