Modell's Takes a Swing at Amazon With Online Presence

By Business Leaders FOXBusiness

Modell's CEO: Our online presence is growing rapidly

Modell's CEO Mitch Modell on the state of brick and mortar, the GOP's Obamacare replacement and the impact of a higher minimum wage.

Are online retailers such as Amazon (AMZN) permanently changing the landscape of retail in America?  Modell's CEO Mitch Modell says for some consumers, the brick-and-mortar experience remains valuable.“ People have to come in, you see this kid come in on a Saturday, he wants to pound the t-ball glove, swing the bat, so there’s something about the experience.” 

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But in an interview with the FOX Business Network’s Stuart Varney, Modell admitted online shopping is a threat. “Well, everyone has to get hurt.”

Modell's, like other brick-and-mortar retailers, are challenging e-commerce giants such as Amazon at their own game. “We do have an online presence as well, which is growing.”

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Modell said the sporting goods retailer would not be hiring more in a direct response to the prospect of a repeal and replacement of Obamacare. “Because at the end of the day it’s all about your sales.  All hiring regarding people is a function of sales, sales increase, you put more people on.”

Though Modell sees a correlation between sales and hiring, he acknowledges it is necessary to take costs such as healthcare and the minimum wage into consideration. “It puts us off but, you know what, you got to tighten up, you got to tighten up on areas.  Listen, minimum wage has a major effect on every retailer.  So at the end of the day, you look to see, you know, the areas of business where you could, you know, save on.”

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