It is no secret that internet stores have had a detrimental impact on big box retail stores which previously had held a near monopoly in regards to how Americans shop. For example, the size of the chain Sears led to the creation of the Sears Tower in 1970. Since that time, Sears as well as other companies, have seen sales figures drastically plummet.
New figures show that Amazon is larger than ten of the top retail companies combined.
Macy’s, Kohl’s, Sears, JC Penney, Nordstrom, Best Buy, Barnes & Noble, Dillard’s, Gap, and Target are now all valued less than Amazon combined. Actually, this combination does not even come close to the valuation of Amazon.
The market value of Amazon is about $370 billion. As a whole, the others add up to a lowly $95 billion. The largest majority of that comes from Target which is valued at $40 billion. The valuation also comes significantly ahead of Alibaba, Wal-Mart, Home Depot, Amazon, and Lowe’s.
This news comes in a long developing trend for in-store shopping to transition to online. For most traditional retail chains, it has been extremely difficult to remain relevant in the new digital age. Although most chains have set up significant online shopping systems, they still have not been able to generate anywhere close to the levels of revenue which had been generated in stores. Rather than go to the websites of individual stores, consumers tend to go to aggregate site which include listings from countless users — like Amazon and Alibaba.
Although the developments in the industry have rarely been positive for retailers, there still is a possibility that if they innovate well enough they could begin to bring some business back. But with Macy’s recently announcing 68 more store closings and cutting 10,000 jobs, the future of the industry certainly appears bleak for virtually every company except Amazon.
What do you think the future of the industry holds? Is there anything that can be done to compete with Amazon? Let HYPELINE know what you think in the comments!
(h/t CNN Money)