Home Business News Retailers are Looking to Gain Profitability Beyond DTC

Retailers are Looking to Gain Profitability Beyond DTC

Retailers are Looking to Gain Profitability Beyond DTC
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The future profitability outlook for large-scale retailers such as Walmart, Target, Lowe’s, Best Buy and Amazon may have nothing to do with traditional brick-and-mortar retail channels. According to reporting from Reuters, Walmart CFO John David Rainey expects retail operations at the big-box behemoth’s nearly 10,000 brick-and-mortar storefronts to account for a less significant portion of the company’s income stream over the next 5 years. 

Instead, major retailers are expecting that other categories such as platform services and ad sales will surpass DTC retail operations as the main driver of profitability. 

Figures released from Amazon’s advertising services over the last quarter of 2022 show that the company raked in nearly $11.2 billion from that segment of the business alone. This growing source of revenue for major retailers comes from a paradigm shift fueled by the pandemic where companies are no longer buyers of advertising space but are instead selling ad space both in-store and on their massive DTC e-commerce operations. 

In other news, according to new data from wearable company Polar, only 42 percent of wearable consumers trust the data produced by their fitness tracker. The company, which manufactures the Polar Grit X among other fitness wearables, is one of the more popular manufacturers on the market. In regards to this surprisingly low rate of trust in wearables, Polar CEO Sander Werring said in an interview with Forbes: “You can’t afford anymore to have a 42% level of trust in the accuracy of what you do.”


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