One of the few ways, Target can fight Amazon is to recruit allies. Predictably, Target is partnering with Disney (NYSE: DIS) for an anti-Amazon offensive.Read more
Essentially, Scout is a box on six wheels that hauls merchandise from a van to your home. An Amazon video shows Scout pulling up to a house and a customer opening the box and retrieving packages. Thus, a good way to think of Scout is as a storage locker on six wheels.Read more
In detail, Ratuken Intelligence estimates Amazon’s share of US ecommerce sales fell from 35.1% in 2017 to 33.7% in 2018. Additionally, Amazon’s share of the US ecommerce market was 28.9% in November 2018. On the other hand, Amazon’s share of America e-commerce rose to 39% during the December 2018 holiday buying frenzy.Read more
Consequently, Amazon could buy Target, Macy’s, Dollar General, or Kroger for cash.
In fact, Jeff Bezos could buy both Dollar General and Macy’s or Kroger and Dollar General at once. Bezos can make such a purchase because Amazon (AMZN) has $41.25 billion in cash.
In particular, Amazon had 30.8 million video-streaming subscribers in America in 2017. Impressively Statista projects that number to grow to 46.3 million U.S. subscribers by 2020.Read more
GrubHub threatens Kroger (NYSE: KR) because of the size of its footprint and growth. For instance, GrubHub claims to serve over 1,700 American cities and 95,000 restaurants.Read more
Under these circumstances, eBay achieves classic value investment criteria. In particular, eBay generates a lot of cash but maintains a low stock price.Read more
Barnes & Noble (NYSE: BKS) will probably join Sears and JC Penney (NYSE: JCP) in the retail graveyard this holidayRead more
Sprouts’ dilemma is that Amazon is just one of its competitors. Besides Amazon sprouts has to compete with Kroger (NYSE: KR), Walmart (NYSE: WMT), Aldi, and Target (NYSE: TGT) to name just a few.
For example, Kroger has a close relationship with Instacart and it is America’s largest organic grocer. For example, Kroger sold $1 billion worth of organic produce in 2017, Progressive Grocer estimates. In addition, Kroger sold $2 billion worth of its Simple Truth organic grand in 2017, Progressive Grocer calculates.
Under those circumstances, I cannot see how Sprouts can compete and survive as an independent company. Instead, Sprouts’ future will be as part of a larger organization – such as Aldi Nord or Kroger.Read more
The $15 an hour minimum wage could have killed 20,000 temporary jobs at Amazon.
To clarify, Quartz estimates Amazon will hire 100,000 temps for holiday season 2018. In contrast Amazon hired 120,000 temporary workers for holiday seasons in 2016 and 2018.
Amazon no longer needs the 20,000 temps because of its deployment of Kiva robots in fulfillment centers, Citi analyst Mark May theorizes. In particular, Kiva robots eliminate workers who pull merchandise from the shelves.
Instead, the robots literally bring the shelves to the workers who pull and pack and the goods for shipment. Quartz claims, Amazon cut the time needed to pull and pack an order from an hour to 15 minutes with robots.
To be fair to Bernie, Amazon would have deployed the robots with or without the $15 wage. In fact, the robots could have made the $15 wage possible by reducing the size of the labor force. Amazon is paying workers more because it has fewer of them thanks to robots.Read more