Amazon is absolutely crushing all retailers. Even WMT is closing stores. As this continues, what happens when Amazon becomes a monopoly?
I remember when I was growing up, there were just a few retail stores, e.g. K-Mart, Sears, etc, and you had to drive 30 miles to get to the next mall. Not that long ago, there was a mall within a couple of miles of the last one, each with a huge number of stores in them.
Now I am seeing the decimation of malls in America.
Old-school American retail is getting crushed by capitalism
Earnings season is sending a massive warning for the retail sector: Big players are getting crushed, and if companies fail to change their strategies, things may go from bad to worse.
A slew of weak results sent traditional retailers into a tailspin this week. Gap (GPS) and Ralph Lauren (RL), along with department stores Macy’s (M), Kohl’s (KSS), Nordstrom (JWN) and J.C. Penney (JCP), all disappointed Wall Street with their latest numbers.
Gap and Ralph Lauren both reported a drop in comparable sales, falling 7% and 5% respectively. And the results weren’t any better for department stores. Macy’s recorded its worst quarterly results since the recession, Kohl’s posted an 87% decline in its profit, Nordstrom slashed its guidance and J.C. Penney reversed five straight quarters of sales growth.
But there’s one massive retailer that’s bucking the trend — Amazon. The e-commerce giant is gaining market share while wreaking havoc on its brick-and-mortar competitors.
“Amazon is already the second largest U.S. apparel retailer (trailing only WMT), as thecompany has grown to ~7% of the overall U.S. apparel market. We estimate Amazon will reach 19% share of the U.S. apparel market by 2020,” Morgan Stanley wrote in a note to clients on Thursday.
The rise of Amazon (AMZN) is something to be reckoned with. Its massive effect on the retail industry was a central part in Berkshire Hathaway’s (BRK-A, BRK-B) question-and-answer session during its annual shareholder meeting on April 30. Chairman and CEO Warren Buffett, alongside vice chairman Charlie Munger, noted that Amazon’s growth is something to admire, stressing the importance for companies to evolve and stay connected with current trends...
http://finance.yahoo.com/news/american-retail-is-getting-crushed-by-capitalism-190519957.html
I remember when I was growing up, there were just a few retail stores, e.g. K-Mart, Sears, etc, and you had to drive 30 miles to get to the next mall. Not that long ago, there was a mall within a couple of miles of the last one, each with a huge number of stores in them.
Now I am seeing the decimation of malls in America.
Old-school American retail is getting crushed by capitalism
Earnings season is sending a massive warning for the retail sector: Big players are getting crushed, and if companies fail to change their strategies, things may go from bad to worse.
A slew of weak results sent traditional retailers into a tailspin this week. Gap (GPS) and Ralph Lauren (RL), along with department stores Macy’s (M), Kohl’s (KSS), Nordstrom (JWN) and J.C. Penney (JCP), all disappointed Wall Street with their latest numbers.
Gap and Ralph Lauren both reported a drop in comparable sales, falling 7% and 5% respectively. And the results weren’t any better for department stores. Macy’s recorded its worst quarterly results since the recession, Kohl’s posted an 87% decline in its profit, Nordstrom slashed its guidance and J.C. Penney reversed five straight quarters of sales growth.
But there’s one massive retailer that’s bucking the trend — Amazon. The e-commerce giant is gaining market share while wreaking havoc on its brick-and-mortar competitors.
“Amazon is already the second largest U.S. apparel retailer (trailing only WMT), as thecompany has grown to ~7% of the overall U.S. apparel market. We estimate Amazon will reach 19% share of the U.S. apparel market by 2020,” Morgan Stanley wrote in a note to clients on Thursday.
The rise of Amazon (AMZN) is something to be reckoned with. Its massive effect on the retail industry was a central part in Berkshire Hathaway’s (BRK-A, BRK-B) question-and-answer session during its annual shareholder meeting on April 30. Chairman and CEO Warren Buffett, alongside vice chairman Charlie Munger, noted that Amazon’s growth is something to admire, stressing the importance for companies to evolve and stay connected with current trends...
http://finance.yahoo.com/news/american-retail-is-getting-crushed-by-capitalism-190519957.html
