Displaying items by tag: ecommerce

Wednesday, 21 November 2018 12:29

Retail Stocks are Getting Crushed

(New York)

Christmas is not looking very merry for retailers. While 2018 has been kind to retailers, especially compared to 2017, the fourth quarter has been rough. The stocks have been getting hammered on the back of weak guidance from a handful of companies in the sector. Not only are retailers under topline pressure from ecommerce, but costs are rising too, squeezing margins. As an example, Target’s shares fell 9% on Tuesday and the shares are down by more almost 20% since August.


FINSUM: This selling pressure seems to be a combination of economic worry and fears about rising costs.

Published in Eq: Total Market
Thursday, 15 November 2018 14:08

Is Walmart Starting to Threaten Amazon?

(Seattle)

Amazon may get all the fan fare, but Walmart is lurking. For many years, Amazon was considered so far ahead of rivals in ecommerce, that anyone catching up with it was considered unlikely. And while Amazon is still the undisputed leader, that view is changing. Walmart’s most recent earnings show that its commitment to ecommerce is thriving. Walmart is leveraging its food business particularly well in transforming its operation. The company is already operating click-and-collect food businesses in 600 US locations. Amazon only has such operations in 22 cities, via Whole Foods.


FINSUM: Both companies seem to want to be the “everything” of 21st century retail, but they are going about it from different angles. Amazon is going from ecommerce into groceries, and Walmart is doing the opposite.

Published in Eq: Tech
Thursday, 27 September 2018 12:36

Amazon Launching New Store in NYC

(New York)

Amazon has announced the launch of a new store in New York city. So far, most of Amazon’s brick and mortar aspirations have been unfulfilled, with only a handful of physical stores across the country. However, the company will launch a new store in New York that will feature the top-ranked and trending items from its website. The company is seeking to offer the items New Yorkers buy most directly in its store. Everything in the store will be a 4-star or higher item. The store is called 4-star and will launch in the SoHo neighborhood of Manhattan today.


FINSUM: We think this is an excellent theme for Amazon stores and could be a concept for the company to launch many more physical outlets across the country.

Published in Eq: Tech
Thursday, 20 September 2018 07:35

Why Amazon Should Split Itself Up

(Seattle)

A provocative headline, we know. But it turns out there are some good reasons why Amazon should consider splitting itself up before regulators do. There are two big reasons the company should consider cleaving itself. The first is that if regulators eventually do it, it will likely be much more messy and painful. But secondly, and perhaps more interestingly, Amazon’s web services business has become so large that it is starting to negatively impact its retail business. Amazon web services (AWS) accounted for more than 100% of the company’s operating income, and analysts estimate it would be worth $600 bn on its own, versus just $400 bn for the retail business. Its might is now getting in the way, however, as former AWS customers like Target have now moved away from using it because the don’t want to share information with Amazon’s retail business, which is a major competitor.


FINSUM: We are quite sure this won’t happen any time soon, but it is beginning to be easier to see the value in doing so.

Published in Eq: Tech
Wednesday, 12 September 2018 10:01

The Best Retail Stock?

(New York)

Retail has had a great year, but looks to be facing headwinds moving forward as executives and analysts have all downgraded forecasts for the sector. However, one area of retail that looks to remain very hot are off-price stores, or discount retailers. Such retailers are seen as largely immune to ecommerce because of their treasure-hunt experience for customers and their high turnover model, which makes them less susceptible to online retailers. Accordingly, they held up well even during retail’s rout. One stock that looks likely to do well now is Burlington Stores. The reason why is that it is behind leaders TJ Max and Ross in that it has not yet optimized its operating model for the current environment, but is beginning to. This is not reflected in its stock, which means it has a great deal of upside.


FINSUM: Retail is one of the sectors we feel we have special insight into, and we definitely agree that off-price stores are going to hold up well moving forward.

Published in Eq: Large Cap
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