How much damage has Amazon done to the rest of the retailing industry? A lot — and I have the numbers to prove it.
Amazon is now worth roughly $483 billion — and its stock has traded above $1,000 a share for the last few days, up 37 percent over the past year.
In fact, Amazon was worth “only” $30.8 billion 10 years ago.
So if you are an Amazon investor, you are probably saying, “Hallelujah, we are rich, rich, rich.”
But there’s another side to the Amazon rise to power. And it’s not just in the number of sales lost by other retailers to the internet Goliath.
I asked David Aurelio, senior research analyst for Thomson Reuters, to determine how much value the rest of the retailing industry has lost while Amazon’s shares have been ascending.
Today, for instance, a group of 35 retailers in the apparel business are worth $110.6 billion, according to Aurelio. That’s down from $135.9 billion a year ago.
I have to mention that all of these figures are based on publicly traded companies in each area of retailing. But the figures don’t include companies, public and private, that may have gone out of business.
Put those failed companies into the equation, and the lost equity would have been even larger.
Automotive retailers (19 of them) are now worth a cumulative $66.6 billion compared with $88.3 billion last year; seven department stores companies, now worth $25.4 billion versus $31.4 billion; and 27 distributors are worth $29.6 billion compared with $32.7 billion.
General merchandise stores (six of them) are down to just $67.5 billion in value compared with $94.8 billion in 2016, and 10 companies in food retailing — an area that Amazon just entered, amid antitrust concerns (see “The Big-Game Hunter” on the opposite page) — are worth $41 billion compared with $55.6 billion last year.
Amazon, of course, isn’t responsible for all this damage. The US economy hasn’t been performing well, so some of the 156 companies in Aurelio’s search…