Why Acquisitions Make Sense In Consumer And Retail - Forbes - 2 views
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This bodes well for growth companies in the consumer and retail space. It also bodes well for investors, whether they use an online investing platform or invest offline.
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The total value of consumer-retail deals actually exceeded the value of internet and software M&A, combined, in 2013. In 2013, the consumer and retail market was about $91 billion according to PriceWaterhouseCooper. The internet and software industries had a total of $55 billion in M&A for 2013.
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I'm surprised that retail services are more profitable than tech. services.
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I would believe that the consumer sector would out do the tech sector simply for the fact that it is more traditional. People are more used to shopping and buying things in person, so tech services trying to let people buy things online face an uphill battle one getting people to switch over. Also everyone has to buy things at some point at a retail store, but not everyone will need help with their technology.
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I believe that we would expect to see an increase in the profits of tech services because as more and more people grow familiar with these services, it is much more convenient and easier for them, like using online shopping rather than going out and spending the time and effort to shop in person. This can be shown by companies like Blockbusters and Borders who went out of business due to at home conveniences of the internet. However, some retail stores and services cannot, and most likely will not, go away because people need what they sell right away, such as grocery stores.