es.euronews.com
Amazon, Retail's Future, and Europe's Fragmented Market
Amidst retail closures (Esprit, Ted Baker, Casino Group), Amazon's VP Mariangela Marseglia forecasts online and traditional retail's coexistence, highlighting the cost-of-living crisis impact on consumer behavior and Amazon's €41 billion contribution to the EU GDP while noting challenges from European market fragmentation.
- What is the impact of the cost of living crisis on consumer purchasing habits and the strategies employed by online retailers to maintain sales?
- In 2024, Esprit closed 56 German stores, Ted Baker shuttered all 46 UK and Ireland locations, and Casino Group shed 768 unprofitable outlets in France. This raises concerns about further retail closures; however, Amazon's EU stores VP, Mariangela Marseglia, predicts the coexistence of online and traditional retail, emphasizing that consumers utilize both.
- How does Amazon's business model contribute to both the success of smaller businesses and the challenges faced by traditional retailers in Europe?
- Marseglia attributes online retailers' success to offering niche or hard-to-find items, citing Amazon's vast book selection as an example unavailable in typical bookstores. She points to Morrisons' successful integration of Amazon delivery alongside its physical stores and online service as a model for coexistence. Consumer habits are shifting due to the cost-of-living crisis, leading to more budget-conscious purchasing and increased reliance on sales events.
- What are the long-term implications of the predicted coexistence of online and traditional retail, considering the regulatory differences and market fragmentation across Europe?
- Amazon's role in the European economy is complex. While contributing €41 billion to the EU's GDP, equivalent to the economies of Latvia or Estonia, and supporting over 127,000 European SMEs, Marseglia acknowledges challenges. She highlights the fragmented nature of the European market compared to the US, arguing that diverse regulations hinder smaller businesses more than larger corporations like Amazon.
Cognitive Concepts
Framing Bias
The article frames the discussion heavily around Amazon's perspective and positive contributions. The headline and introduction set the stage by focusing on Amazon's position in the retail market and its vice president's predictions. The inclusion of Mariangela Marseglia's comments and optimistic view of Amazon's impact dominates the narrative. While counterpoints are included in mentions of store closures, the framing gives more weight to Amazon's role and success.
Language Bias
The article uses generally neutral language. While it mentions Amazon's contributions to the economy positively, the language describing negative aspects of Amazon's impact is not overly critical or accusatory. The phrasing used to describe Amazon's potential positive role in the economy is carefully selected and highlights the positive impact.
Bias by Omission
The article focuses heavily on Amazon's perspective and impact, potentially omitting perspectives from struggling retailers or independent analyses of Amazon's role in the decline of traditional retail. While the article mentions store closures of Esprit, Ted Baker, and Casino Group, it doesn't delve into the specific reasons beyond mentioning profitability issues. This lack of deeper analysis into these companies' challenges leaves the reader with an incomplete understanding of the factors contributing to the decline of traditional retail. Further, the article omits discussion of potential negative economic impacts of Amazon's dominance, such as job displacement in traditional retail or potential monopolistic practices.
False Dichotomy
The article presents a somewhat simplified view of the relationship between e-commerce and traditional retail as a simple coexistence. While Mariangela Marseglia argues for coexistence, the article doesn't fully explore the complexities of the competitive relationship, such as potential displacement of traditional retailers by Amazon. It simplifies the situation to a choice between online and physical stores, neglecting the nuanced reality of many retailers trying to integrate both.
Sustainable Development Goals
Amazon claims to support over 127,000 European SMEs, facilitating their growth and export capabilities. This contributes to job creation and economic activity within the EU. However, the article also highlights challenges faced by SMEs due to fragmented European regulations, which may hinder their growth and impact the overall positive effect on the economy.