Sign up for our daily briefing
Make your busy days simpler with Axios AM/PM. Catch up on what's new and why it matters in just 5 minutes.
Stay on top of the latest market trends
Subscribe to Axios Markets for the latest market trends and economic insights. Sign up for free.
Sports news worthy of your time
Binge on the stats and stories that drive the sports world with Axios Sports. Sign up for free.
Tech news worthy of your time
Get our smart take on technology from the Valley and D.C. with Axios Login. Sign up for free.
Get the inside stories
Get an insider's guide to the new White House with Axios Sneak Peek. Sign up for free.
Catch up on coronavirus stories and special reports, curated by Mike Allen everyday
Catch up on coronavirus stories and special reports, curated by Mike Allen everyday
Want a daily digest of the top Denver news?
Get a daily digest of the most important stories affecting your hometown with Axios Denver
Want a daily digest of the top Des Moines news?
Get a daily digest of the most important stories affecting your hometown with Axios Des Moines
Want a daily digest of the top Twin Cities news?
Get a daily digest of the most important stories affecting your hometown with Axios Twin Cities
Want a daily digest of the top Tampa Bay news?
Get a daily digest of the most important stories affecting your hometown with Axios Tampa Bay
Want a daily digest of the top Charlotte news?
Get a daily digest of the most important stories affecting your hometown with Axios Charlotte
If you are one of the tens of millions of Amazon Prime members in the U.S., it’s easy to presume that online shopping will be future for everyone.
But over the next five years we will see an America that is divided by how and where we shop, with low income and rural Americans depending on discount outlets like Dollar General and Family Dollar, where the primary value proposition is not convenience but price — a fact that isn't likely to change.
- In a new survey by Axios/SurveyMonkey, 71% of respondents with a household income of less than $50,000 a year said they preferred shopping in a store over online, compared to only 54% of those in households with income over $100,000.
- "To shop [online] at Old Navy, you need to spend $50 for free shipping. And if you don't spend that much, there is a $5 shipping charge, which is half of one additional item.... It’s material for some consumers," Kimberly Greenberger, an analyst with Morgan Stanley, tells Axios.
- Even Walmart has a $35 minimum for free delivery, a threshold that is too high for many consumers.
The bottom line: Online shopping will continue to grow in popularity with higher and middle-income shoppers, but won't compete with the flexibility and rock bottom prices of dollar stores.
Special report: The future of retail