Big box stores like Walmart and Target may have to reinvent their business model or end up on the dustbin of history, according to a major investment firm.
Analysts from investment firm Goldman Sachs cut their ratings on shares of Walmart Tuesday, noting that shoppers are increasingly skipping big box stores and turning to more convenient smaller stores or the Internet.
Sales at Walmart and Target are in decline, with Target profits down 16 percent and same-store sales at Walmart falling in 12 of the last 20 quarters, according to Retail Metrics.
Liz Gannes, a writer at tech website Re/code, is one of the reasons. “I’m 31 years old and I don’t often go to big box stores.”