Major retailers such as Target and Walmart have already recognized the growing influence of e-commerce and mobile commerce and are offering online store formats. Costco, whose advantage lies in wholesale sales, also announced a greater focus on e-commerce with plans for mobile apps and improvements to Costco.com. It is becoming increasingly clear that companies that continue to invest in the growing online sales channel are likely to emerge. as future leaders. Brick n Mortar retailers such as Target and Walmart are investing in creating an omnichannel environment. The model embraces IT while leveraging the benefits of physical locations. Companies that don't invest as much as online channel leaders (e.g. Kmart) risk losing out in the long run. Operational Efficiency The retail industry is commodity-centric and therefore highly dependent on price/cost advantages. Investments in IT technologies enabling efficient inventory management. The retail industry is one of the largest users of Big Data. Big Data is used to analyze process improvements, study logistics, optimize inventory, improve merchandising and, most importantly, study consumer behavior in-store and online to predict future needs. IT technologies enabling supply chain efficiency will play a greater role. to achieve cost leadership. Companies like Walmart that can use IT to track and manage the purchasing, storage, and distribution of goods can offer lower prices, which is a key success factor in the industry. Amazon and Walmart, which continually invest in technology, are likely to remain competitive on price and be able to offer services that make goods available to consumers efficiently, risk placing themselves in the middle of paper.. ...the distribution channel would reduce Amazon's labor costs, thereby increasing its ability to further reduce product prices. As a result, traditional retailers would face even tougher competition from online retailers. Online shopping is set to radically change the dynamics of the retail industry by increasing consumer reach. It is expected to continue to thrive with mobile transactions increasing and online retail sales expected to reach $434 billion over the next four years. Even big box stores are getting into the e-commerce market. Online shopping will be disruptive for the following reasons: • Industry leaders such as Walmart, Target and Costco have a large physical footprint. It will be difficult to adopt online channels. • Industry leaders do not have as much expertise in online channels as their “younger” competitors like Amazon..