A Shift in Shopping Yields Investment Opportunities
​Traditional Retailing is Being Challenged by High-Cost Business Model.​

The multi-trillion dollar retail market is being reshaped by the internet. Sales and traffic at brick-and-mortar stores on Thanksgiving Day and Black Friday this year continued to decline. Meanwhile, internet sales rose in the double digits on both days, surpassing $3 billion for the first time on Black Friday. This tectonic shift is creating investment opportunities.


  • Reasons e-commerce is likely to continue its fast growth: faster connection speeds, evolving payment technologies, and the overall increasing ease of mobile shopping

  • Reasons brick and mortar retail will decline: lower pricing and margins as a result of the internet driving increased price transparency, higher required expenditures and discounts to fight declining in-store traffic, and traditional brands increasingly selling directly to consumers over the internet

  • Investment opportunities exist with online merchants, payment companies, online advertising firms, parcel delivery companies, and software providers

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The views expressed are the views of Fred Alger Management, Inc. as of November 2016. These views are subject to change at any time and they do not guarantee the future performance of the markets, any security or any funds managed by Fred Alger Management, Inc. These views are not meant to provide investment advice and should not be considered a recommendation to purchase or sell securities.

Risk Disclosures: Investing in the stock market involves gains and losses and may not be suitable for all investors. Growth stocks tend to be more volatile than other stocks, as the prices of growth stocks tend to be higher in relation to their companies' earnings and may be more sensitive to market, political and economic development.

Fred Alger & Company, Incorporated 360 Park Avenue South, New York, NY 10010 / www.alger.com

800.305.8547 (Retail) / 212.806.8869 (Institutional)​