Wednesday, August 30, 2017

Talk-Talk vs. Walk-Walk

The Amazon Hat vs. the Wally-World cattle. Inc., far from dominating the retail sector, is actually the weakest of the big U.S. players based on operating results, Moody’s Investors Service said Wednesday.

The e-commerce giant is the subject of a number of myths regarding its size and clout that mask the reality of its position compared with rivals like Wal-Mart Stores Inc...

Oh?  From what you've seen on the InterTubes, Amazon is just the biggest....whatever....on Earth, and pretty soon it will be delivering goods to Mars!!  BUY THE STOCK!!  NOW!!!!

On the other hand....

...The perception that Amazon is poised to take over the grocery business via its acquisition of Whole Foods, which closed this week, is another myth, said O’Shea.

“Online sales still account for only about 10% of overall U.S. retail sales, with a much lower percentage in the grocery segment, leaving the big brick-and-mortar retailers, led by Walmart, still really formidable competitors in the industry,” he wrote....

Wait.  There's more.

 ...While Amazon is clearly disruptive, it does not dominate any category in which it operates. In consumer electronics, for example, Amazon has about a third of the share of Best Buy Co. Inc. BBY, -1.51%  .

“When it announced that it would enter services, we think it received way more attention than it deserved,” said O’Shea. “Best Buy has Geek Squad embedded with its customers, and 20,000 employees will be difficult to tackle, especially when considering the added advantage of the store base to support this effort.”...

Umnnhhhh....Whole Wallet/Whole Paycheck does around $20BN in food sales.  Kroger does around $130BN--and WallyWorld has 25% of the market with $200BN.

Say what you like, but in the end, bullshit walks.  You might want to take a hard look at your Amazon holdings.

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