Zero Hedge has the story: Amazon is eating its competition.
Recently, the venerable Macy’s closed dozens of stores and laid off thousands of workers. The Limited shut down all of its stores. Other once great department store chains—from Sears to Penny’s—are dying a slow death. Only Walmart seems to retain its vitality, and it announced, just yesterday, that it is laying off people.
And Amazon rules over all of them. The ensuing chart involves market capitalization, which is the value the stock market places on the company. And we know that Amazon does more than retail. And, of course, the stock market is not always right. With that cautionary note in mind, we see that Amazon is bigger than the aggregate of all its competitors.
Zero Hedge explains:
Sears went from being worth $27.8 billion to $1.1 billion (a 96% decrease), while JCPenney went from $18.1 billion to $2.6 billion (a 86% decrease).
Amazon, on the other hand, did okay for itself.
The online retailer gained 1,934% in value over the same timeframe, making it one of the most valuable companies in the world, and a key piece of Jeff Bezos’ business empire.
The picture is the same when you look at sales figures. Zero Hedge writes:
Ten years ago, the future of brick and mortar retail sill looked bright. The aforementioned retailers were worth a collective $400 billion, and Amazon was only valued at $17.5 billion.
But disruption often comes without warning. Or if there were warning signs, they went unheeded by retailers.
Big box and department store sales plummeted, as consumers increasingly went online to do their shopping. This year, it is estimated that revenues are equal to just 62% of their totals in 2006.
It’s always worth paying attention to shifting economic realities. As an economist recently noted, the trend toward consolidation and bigness is swamping entrepreneurialism.