E-commerce and teens: A dangerous mix for specialty retail

|By:, SA News Editor

Specialty retail categories are where e-commerce has had the strongest impact on brick-and-mortar stores, concludes Re/code after scanning sales charts.

While food and healthcare categories show lower e-commerce penetration as consumers only slowly pivot away from their traditional buying habits - retailers that sell clothing (EXPR, RUE, ZUMZ, PSUN, AEO, CACH, BODY, CHS, CWTR, NWY, BEBE, ANN, CBK) , sporting goods (HIBB, CAB, BGFV), and electronics (BBY, RSH) continue to lose market share to online sellers at an astonishing pace that shows little signs of slowing down.

Demographics aren't working in the favor of the trend reversing itself either as more teens show a tendency to favor online upstarts such as Nasty Gal or Stitch Fix over former mall rat favorites like Gap (GPS), Aeropostale (ARO) or Abercrombie & Fitch (ANF). The younger set is also attuned to deal-shopping and buying used products online which are margin killers in the electronics category.

Re/code sees at least two companies that don't mind the e-commerce evolution: FedEx (FDX) and UPS (UPS) could get busier and busier.