Impacts of e-commerce on retail

Ivy Asset Strategy Fund
08.08.17

Firms around the world are disrupting the retail business model

The longstanding brick-and-mortar retail business model faces growing disruption from online and mobile e-commerce businesses. The scenario is reaching critical levels for many retail companies in the U.S. but also is playing out in countries around the world. The expansion of consumer populations, especially in emerging markets, has spurred demand for goods and services that previously may not have been available through traditional markets. Disruptive technologies are affecting the shopping experience, but also are changing business logistics and delivery methods. And the changes are likely to continue.


Source: U.S. Census Bureau, estimated quarterly U.S. retail sales, May 2017; (p) = preliminary; e-commerce sales are sales of goods and services where an order is placed by the buyer or price negotiated over an Internet, extranet, Electronic Data Interchange (EDI) network, electronic mail, or other online system.

 

Investable Theme in Action: Ivy Asset Strategy Fund

Cynthia Prince-Fox and Chace Brundige, CFA, portfolio managers, believe online and mobile e-commerce will remain a key driver of change for retailers in the U.S. and other countries.

A closer look at the Ivy Asset Strategy Fund

Here are three examples of companies that are disrupting the retail business model around the world.

Amazon.com, Inc. (AMZN)

Alibaba Group Holdings LTD. (BABA)

Mercadolibre, Inc. (MELI)


Past performance is not a guarantee of future results.The opinions expressed are those of the Fund’s portfolio managers and are not meant as investment advice or to predict or project the future performance of any investment product. The opinions are current through August 2017, are subject to change based on market conditions or other factors, and no forecasts can be guaranteed. The holdings discussed are for illustrative purposes only and are not intended as a recommendation to purchase, sell, or hold any specific security or to engage in any investment strategy.

Investment return and principal value will fluctuate, and it is possible to lose money by investing.

AMZN: 1.49%, BABA: 1.61%, MELI: 0.97% of net assets as of 06/30/2017.

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