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"Mortar and Bricks" still a good investment

The growth of e-commerce in present times has been a cause of worry for many analysts and they proclaim that traditional "bricks and mortar" shopping was going to extinct. But a new study shows the traditional shopping is still alive and well for many Americans. According to new study by global consulting firm A.T. Kearney, consumers continue to flock to physical retail locations and are actually crucial in generating online sales for retailers. According to the study, 90% of all U.S. retail sales conducted last year was done in a physical store versus only about 9% done online. Moreover, 95% of sales were accounted by retailers with bricks and mortar presence. Kearney noted that stores make a significant contribution to generating sales, even if the transaction is eventually done online. Through the five stages of a retail transaction - Discovery, Trial & Test, Purchase, Delivery or Pickup, and Returns - at some point along the chain, the majority of consumers will use a physical store. One could be in smaller mall operators. While Simon is the largest owner, smaller firms like CBL & Associates Properties Inc. (CBL), Macerich Co. (MAC) have all experienced faster funds-from-operations (FFO) growth than their bigger rival. The bottom line is Bricks and mortar stores aren't dead or even dying. Not by a long shot. For investors, that mean the owners of shopping malls, power centers and other retail real estate are in a prime position to continue paying strong dividends for years to come. Read more at: : http://www.investopedia.com/stock-analysis/080614/why-bricks-and-mortar-retail-remains-solid-bet-spg-cbl-mac-amzn.aspx

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