Groundhog Day

$FINL and $NKE were the two simple trades of the day, both massive shorts and big wins.  $FINL has been a veritable ATM since the mid 20’s started cracking.   I feel like its groundhog day in the retail sector, anyone else??  It does have me thinking bigger picture on where this business is going.  How much, truly, can $AMZN and $WMT truly absorb?

I recognize today’s consumer has the opportunity to be more educated than ever….HOWEVER, just because it says it on the internet does not mean that its true.  I think of this specifically for my background, specialty retail.  I remember 5+ years ago, when our customers started coming in knowing just as much (or more) on Garmin and some footwear models than what I would know and I would be scrambling to provide them a reason “why” to shop us.  I can smile and engage like nearly no other, but is that worth it in a consumers eye?  Is it memorable?  I recently said an annoying $DKS sponsored ad on Instagram proudly touting the fact that they will price match anyone.  Meanwhile….well, YOU just take a look at their chart.  Ugh.  I replied with a question of “hey, $DKS, why not arm your teams with knowledge and give your traffic a reason to come into your stores?”  Some lame guy replied back to me stating he would rather buy from a robot.  Really??

That is the great challenge, though for retailers.  If your team doesn’t provide a reason, why should any consumer buy brick and mortar?  The irony is that most b&m are reducing their labor and solely relying on part timers, people who are often not committed to the experience and are often there truly to just get a paycheck.

As I walked around $WMT today here in Honolulu, I was amazed how crazy it was.  Granted, it is back to school and it is Hawaii, where choices are fairly limited and $AMZN may not be the “go-to” option due to timing.  One thing, for sure, I need to do more research.  Right now, my money is on $WMT‘s strength already in B&M and a strong ecommerce experience.  $AMZN still has a lot to learn in physical stores, in my opinion.  Love to hear your thoughts, traders.

 

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