Michael Zimmerman's Hedge Fund On The Online-Offline Retail Convergence

   Michael Zimmerman's Hedge Fund On The Online-Offline Retail Convergence

Amazon goes offline while retailers scramble online - Michael Zimmerman's
hedge fund Prentice Capital believes customers want to combine pure online
shopping with visiting stores.

PR Newswire

NEW YORK, March 29, 2014

NEW YORK, March 29, 2014 /PRNewswire/ -- CEO Michael Zimmerman of hedge fund
Prentice Capital and Chairman of retailer dELiA*s notes that it's not all
plain sailing for online-only retailers: without a physical store, shops are
reliant on couriers or the postal system to deliver purchases, and failed
package delivery has long bedeviled online retailers.

Online retail giant Amazon is borrowing a tactic from traditional retailers,
quietly installing large metal cabinets "Amazon Lockers" in grocery,
convenience and drugstore outlets accepting packages for customers for later
pickup. And Amazon is trying another method of selling its items: via vending
machines in airports and some malls around the country.

Could this signal a convergence between online and offline retailing?

Zimmerman firmly believes customers want to combine pure online with visiting
shops. Stores have a big role to play; typically more than two-thirds of sales
combine stores with online elements, such as collecting Internet orders
in-store, researching online or scanning items with smart phones to read
reviews.

Retailers need strong branding and well-planned online & mobile shopping
platforms, says Zimmerman, who has long held the view that the online-offline
consumer convergence will put even more pressure on offline retailers to build
a strong online retail presence.

Despite fewer shoppers in store, Zimmerman believes sales are increasingly
driven by sofa shoppers wielding tablet computers. Considering that an
estimated 64 million new iPhones and iPads are already in consumers hands
during the last quarter of 2013, the new year could be a breakthrough year for
mobile shoppers.

With parabolic mCommerce sales trends, retailers that do not provide consumers
with a seamless shopping experience are leaving a significant amount of money
on the table. A recent Deloitte study(1) that found customers who shop across
channels spend three times more than store-only customers, and a small but
growing percentage of revenue comes from online customers who only shop on
mobile devices.

Michael Zimmerman's Prentice Capital is a financial investment advisory firm
specializing in investments in the U.S. consumer retail sector. Prentice
Capital Management LP is headquartered in Greenwich, and was founded in 2005
by Zimmerman.

Citations:
(1) "The changing face of retail" Deloittes, 2013

SOURCE Prentice Capital Management LP

Contact: Sam Taner, HedgeUp, sam.taner@hedgeup.com, +1 (646) 583-2187,
http://hedgeup.com/michael-zimmerman-fund
 
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