Economics and Finance
The history of retail has been an evolutionary process of new innovations and transformations. Previous changes include: the development of catalogue based retail, and the recent innovation of super stores, known as big-box retailers. It is possible that we are dawning upon a new revolution of the retail environment as electronic commerce (e-commerce) continues to grow. This paper will analyze the impact of e-commerce on retail markets, specifically big-box stores (warehouse style retailers with over 750 million in sales). Using financial and real estate data from BloombergTM, and e-commerce data from eMarketerTM and the US Census Bureau two models were built. These two models will be utilized to answer the following questions. Has the growth of e-commerce affected the retail real estate market and the retail financial market? Which retail submarkets have been affected most by the growth of e-commerce? The first model will test whether growth in e-commerce spending in retail submarkets (i.e. sporting goods and bookstores) will cause a decrease in the stock performance of big-box retailers within those market sectors. The second model will test whether growth in the different e-commerce retail submarkets will cause a decrease in the square footage growth rate of the big-box stores in those same retail submarkets.
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Business | Corporate Finance | E-Commerce
Bates, Brian, "E-commerce’s Impact on Big-Box Retailers" (2016). Honors Theses. 81.