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Jeff Bezos Is No Longer The Richest Person In The World After Amazon Stock Plunges

Amazon founder and chief executive Jeff Bezos lost his title as the richest man in the world during after-hours trading on Thursday, following a lackluster third-quarter earnings call from his ecommerce behemoth.

Amazon shares fell 7% in after-hours trading, knocking Bezos’ fortune down to $103.9 billion. That puts him at number two among the world’s richest. The new number one: Microsoft cofounder and fellow Washington state resident Bill Gates, who is worth $105.7 billion.

Bezos became the richest man in the world in 2018 and the first centibillionaire to ever appear on the The Forbes 400 that year with a net worth of $160 billion, ending Gates’ 24-year run as number one.

Today In: Billionaires

But the Amazon chief executive’s net worth drop isn’t entirely due to the decline in Amazon shares. Bezos transferred a quarter of his Amazon stake to his ex-wife MacKenzie Bezos as part of their divorce settlement, which was finalized earlier this year. MacKenzie Bezos is worth $32.7 billion, and among the top twenty wealthiest people in the world.

On Thursday afternoon, Amazon reported a 26% drop in net income in its third quarter, its first profit decline since 2017.  In after-hours trading, Amazon dropped nearly 9% to $1,624 per share in the 20 minutes after the market closed. It has since rebounded slightly, hovering at $1,657 per share at 7:30 p.m. ET.

The company said it is investing heavily in logistics and delivery infrastructure, with the goal of making one-day shipping the norm for Amazon Prime members. The company disclosed during its second quarter earnings call in July that it had spent “a little bit” more than the estimated $800 million that it has previously said it would invest in one-day shipping infrastructure. The company declined to disclose how much it had spent on one-day shipping in the third quarter. But chief financial officer Brian Olsavsky did disclose Thursday that the company plans to spend $1.5 billion in the fourth quarter, presumably to finance the one-day shipping initiative.

Gates, meanwhile, has been out of Microsoft since 2014 when he stepped down as chairman of the storied company, though he remains a board member. He has sold or given away the majority of his Microsoft stake and diversified his wealth over time. He is now the co-chairman of the Bill & Melinda Gates Foundation, the largest private charitable foundation in the world.

Bill Gates debuted on Forbes’ first ever billionaire list in 1987 with a net worth of $1.25 billion. Bezos first joined The Forbes 400 list of richest Americans in 1998, one year after Amazon went public, with a net worth of $1.6 billion.

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Angel Au-Yeung has been a reporter on staff at Forbes Magazine since 2017. She covers the world’s wealthiest entrepreneurs and tracks how they use their money and power.

 

Source: Jeff Bezos Is No Longer The Richest Person In The World After Amazon Stock Plunges

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A detailed look at the most expensive divorce in history where Jeff Bezos, the richest person in the world is set to lose almost half of his net worth. Follow us! Twitter: https://twitter.com/MrLuxuryBrand Instagram: https://www.instagram.com/MrLuxuryBrand Facebook: https://www.facebook.com/MrLuxuryBrand Support the Channel! https://www.patreon.com/MrLuxury Why Jeff Bezos Will No Longer Be The Richest Person

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Amazon Almost Killed Target. Then, Target Did the Impossible

In 2017, everyone was laughing at Target.

Sales had continued to slide. Stores were in disrepair. And company leaders were struggling to adapt to the changing behavior of consumers–many of whom were shopping more and more with online retailers like Amazon.

As fellow retailers Macy’s, J.C. Penney, and Gap collectively shuttered hundreds of stores because of similar struggles, analysts said Target should do the same.

But Target executives, led by CEO Brian Cornell, had a different idea. The key to revitalizing Target, they said, was to go on the offensive.

So, in March 2017, Target made a huge announcement: It planned to invest over $7 billion in a turnaround strategy that would include:

  • remodeling existing stores (and opening smaller ones in urban areas);
  • introducing new, private label brands; and,
  • enhancing its digital shopping experience.

Wall Street thought the plan was a disaster. On the day of the announcement, Target suffered its largest stock plunge in almost a decade.

But fast-forward to today, and Target is thriving. First-quarter results for 2019 beat analysts’ expectations. The store’s private-label lines are exploding. And as comparable store sales continue to rise, the stock price is trading at an all-time high.

How did Target do it?

A close look at the company’s brilliant turnaround strategy reveals some major lessons for businesses of any size.

Here are some highlights:

Think long term.

When Target announced its turnaround plan, Cornell expected backlash. He knew investors would hate the idea of stuttering profits for the foreseeable future.

But he held fast to his plan. “We’re investing in our business with a long-term view of years and decades, not months and quarters,” Cornell said at the time.

Cornell knew this reset was necessary because so many Target stores had fallen into disrepair over the years. And while the company was making efforts in e-commerce, it simply didn’t have the infrastructure to deliver.

Contrast that with today. Target has remodeled hundreds of stores, and it has built a hundred “mini-stores” in urban areas like New York and on college campuses (with plans to open dozens more of these every year for the foreseeable future). The company also invested heavily in its e-commerce operations to great benefit. (More on this in a minute.)

By focusing on the long-term health of the company instead of short-term financial performance, Cornell took a page out of Jeff Bezos’s playbook–and it clearly worked.

Leverage your strengths.

Target’s e-commerce infrastructure needed a complete revamp. But could the company really compete with Amazon and Walmart, which were years ahead of the curve?

It could–by doing things a little differently.

Target execs knew that as popular as e-commerce has become, the majority of retail shopping still takes place in physical stores–especially when it comes to clothing.

So Target chose to focus on a model that would maximize its strengths. Known as “ship-to-store,” Target’s e-commerce platform turns physical stores into mini warehouses for online customers. That makes it possible for customers to order a product online, and then pick it up in a store on the same day.

Ship-to-store reduces Target’s shipping and handling costs, and takes advantage of already existing space in physical stores. And if a customer decides to do some shopping while already there at Target, the benefit is two-fold.

Fill a gap.

Consumers had once affectionately referred to Target as “Tarzhay,” an ode to products and style that were affordable yet a step above those offered by competitors like Walmart. Over time, though, Target had created too many labels that were clear misses.

“Tarzhay” had lost its cachet.

But nobody had stepped up to fill that gap of stylish, exclusive clothing for lower prices. So, in an effort to rebuild its reputation, Target doubled down on its exclusive brands. The company has launched 20 private-label lines over the past three years, including brands for modern furniture, kids’ clothes, electronics, and home goods.

The investment paid off: Six of Target’s private-labels each do more than a billion dollars in annual sales. These labels, together with other brands sold exclusively at Target,  contribute nearly a third of the company’s overall revenue (and an even greater percentage of profits).

In addition, Target has worked hard to fill gaps left by unsuccessful competitors. For example, when stores like Toys “R” Us and the Sports Authority went bankrupt, Target saw this as opportunity: market share begging to be gobbled up.

Yes, Target has definitely gotten its groove back. It did so by bucking analysts’ advice, and instead returning to basics:

Thinking long-term. Leveraging strengths. Filling gaps.

I guess Target got the last laugh after all.

By: Justin Bariso Author, EQ Applied

Source: Amazon Almost Killed Target. Then, Target Did the Impossible

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MacKenzie Bezos Is Now Worth $36.1 Billion. But Who Is She?

MacKenzie Bezos was not fussy, which was helpful, as there was no time for fussiness at Amazon headquarters in early 1996. She shared her office with a junior employee in a space that doubled as the company kitchen. For 12 hours a day, as workers squeezed by to use the microwave, she presided over the accounting. At night she headed to the warehouse to pack orders.

She “was a huge contributor,” says Mike Hanlon, Amazon’s seventh employee. “She really is a talented person in a way that I think gets lost when you’re the billionaire’s wife.”

The mystery around MacKenzie, 49, seems carefully cultivated. She largely slipped into anonymity after Amazon’s early years and has granted no interviews since January, when her split from husband Jeff became public. The couple finalized their divorce in July, with MacKenzie getting 25% of his Amazon stock. That stake is currently worth $36.1 billion, enough to put her 15th on this year’s Forbes 400.

“She should have gotten 50% of the company,” says Nick Hanauer, one of Amazon’s first investors. “MacKenzie was an equal partner to Jeff in the early days.”

In keeping with character, MacKenzie wouldn’t talk for this story. To shed some light on her, we spent weeks contacting more than 100 friends and former classmates and coworkers; even that yielded only a hazy picture, one of an intensely private but talented woman who has, quietly, excelled at every stage of her life.

MacKenzie grew up in San Francisco, a middle child with two siblings. At 6, she wrote a 142-page book called The Book Worm. Her parents, a homemaker and a financial planner, sent her to Hotchkiss, the Connecticut boarding school, where she graduated a year early. She studied at Cambridge, then Princeton, where she majored in English; Nobel Prize-winning novelist Toni Morrison was her thesis advisor. “She was generally a very poised and a quiet and brilliant presence,” says Jeff Nunokawa, one of her English professors.

After graduating, she took a job at the hedge fund D.E. Shaw, where she began dating Jeff Bezos, who left to found Amazon in 1994. From the outset, MacKenzie was heavily involved. “No one really had job titles . . . so she did just about everything,” says Tod Nelson, another early employee.

MacKenzie pulled back around the time Amazon went public, in 1997, to focus on fiction writing. She kept a low profile until 2005, when HarperCollins published her first novel, The Testing of Luther Albright. Morrison deemed it “a rarity.” MacKen­zie followed it in 2013 with Traps.

The more recent chapters of her life are largely unknown. In 2018 she and Jeff committed $2 billion to fight homelessness and support nonprofit preschools. In May, as their divorce neared completion, she signed the Giving Pledge, promising to donate at least half her wealth. True to form, she hasn’t said a word about where those billions will go.

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I’ve been a reporter at Forbes since 2016. Before that, I spent a year on the road—driving for Uber in Cleveland, volcano climbing in Guatemala, cattle farming in Uruguay, and lots of stuff in between. I graduated from Tufts University with a dual degree in international relations and Arabic. Feel free to reach out at nkirsch@forbes.com with any story ideas or tips, or follow me on Twitter @Noah_Kirsch.

Source: MacKenzie Bezos Is Now Worth $36.1 Billion. But Who Is She?

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A new book about Amazon.com and its CEO, Jeff Bezos, “The Everything Store,” is not receiving positive feedback from Bezos’ wife. John Blackstone reports.

Amazon Is The Second Company To Report Tesla Solar Panel Fire

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Topline: Amazon is joining Walmart in pointing the finger at Tesla solar panels for fires on the roofs of their facilities in what is yet another hiccup for Tesla’s embattled solar business.

  • Amazon said Tesla solar panels caught fire in June 2018 at one of its warehouses in Redlands, California.
  • Amazon’s disclosure comes days after Walmart sued Tesla for breach of contract and gross negligence after seven stores experienced roof fires allegedly caused by faulty Tesla solar panels. Both companies later said they are working together to “addressing all issues.”
  • Amazon said it would not install any more Tesla panels.

In a statement to Forbes, a Tesla spokesperson said in an email that the Amazon fire was an “isolated event” at one of 11 Amazon sites with solar panels.

“Tesla worked collaboratively with Amazon to root cause the event and remediate. We also performed inspections at the other sites, which confirmed the integrity of the systems. As with all of our commercial solar installations, we continue to proactively monitor the systems to ensure they operate safely and reliably,” the statement continues.

Amazon did not immediately respond to a request for comment. Tesla did not respond when Forbes asked whether the company has plans for broader inspections of both commercial and residential solar power installations.

According to a Business Insider report, Tesla was aware of problems related to its solar panels. In the summer of 2018, around the same time as the Amazon fire, Tesla launched a secret internal project called Project Titan to replace what the company said were faulty “connectors” manufactured by Connecticut-based Amphenol, according to the report.

“We have no reason to believe that Amphenol’s products are the cause of any issues related to the claims filed by Walmart against Tesla,” an Amphenol spokesperson said in a statement.

Key Background: Tesla’s embattled solar business has been plagued by plunging sales, production delays and layoffs since CEO Elon Musk acquired solar company SolarCity for $2.6 billion in 2016.

Musk hasn’t tweeted about the Walmart or Amazon complaints, but instead announced a revamped pricing plan in an effort to boost the slowing solar panel business. The new pricing model allows residents in six states to rent solar power systems starting at $50 a month ($65 a month in California) instead of buying them up front.

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I’m a San Francisco-based reporter covering breaking news at Forbes. Previously, I’ve reported for USA Today, Business Insider, The San Francisco Business Times and San Jose Inside. I studied journalism at Syracuse University’s S.I. Newhouse School of Public Communications and was an editor at The Daily Orange, the university’s independent student newspaper. Follow me on Twitter @rachsandl or shoot me an email rsandler@forbes.com.

Source: https://www.forbes.com/

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How Leading Enterprises Are Building Blockchain Innovation On AWS

Blockchain hype—led by cryptocurrency headlines—obscures powerful enterprise applications of the technology. We aim to change that. In this series, we’ll bring you insights from Amazon Web Services customers and partners who are using blockchain to change the world.

The world grows more interconnected every day. Businesses collaborate across the globe. Transactions increase in volume and intricacy. Organizations that share sensitive information across public networks risk information leaks and the possibility of sophisticated cyber attacks.

Traditional methods of storing, verifying, and securing transactions struggle to keep pace with this rising complexity. Massive inefficiency results from the need to process and verify information spread across entities. Entire industries exist only to serve as trusted intermediaries between parties. Attempts at automation create fragile webs of APIs.

Blockchain and digital ledger technologies solve these problems by storing transactions in ways that are transparent, immutable, and verifiable. And they allow multiple parties to transact in a trustworthy and efficient manner, with or without a centralized authority.

Many exciting use cases are possible. Manufacturers could build track and trace ledgers that unify data from multiple systems, enabling faster identification of the reasons for product defects. Consumers could see the history of goods from raw materials to last-mile delivery. Insurers could pay claims in seconds. The time it takes to issue a bond through a securities exchange could shrink from months to minutes.

Companies are working to reap the benefits of blockchain, such as greater speed, efficiency, and reduced risk. For example, Gartner calls blockchain one of the top 10 strategic technologies of 2019. Eighty-five percent of enterprises in a Deloitte survey said they invest $500,000 or more annually in blockchain technologies.

Yet few have deployed these systems to production. Significant challenges hamper the transformative potential of blockchain. Businesses cite regulatory issues, technical barriers, security threats, uncertain ROI, and lack of in-house skills as the biggest barriers.

Many of our own customers, such as Nestlé and Singapore Exchange, have told us about the complexity of building scalable enterprise applications on blockchain. Setting up the hardware, networking, and software can be daunting, even before getting to the experimentation phase. This delays potentially life-changing innovations.

Amazon Web Services (AWS) solves these issues in two major ways. First, we built Blockchain on AWS—a set of massively scalable blockchain and distributed ledger services in the cloud. If all you need is a centralized ledger that immutably records all application data changes, there’s Amazon Quantum Ledger Database (Amazon QLDB). If you need to build a distributed application with ledger capabilities and the ability for multiple parties to transact without a trusted central authority, there’s Amazon Managed Blockchain.

Second, we collaborate closely with leading enterprises to speed innovation. From global manufacturers to finance-industry cornerstones, these companies are creating a more scalable, secure, efficient future. For example, they’ve demonstrated that blockchain delivers throughput to handle U.S. securities trading. Others have built solutions to connect small-scale farmers with consumers thousands of miles away.

We’ll highlight these and many other exciting use cases in the coming weeks. We’re thrilled to bring you along on the journey.

For 13 years, Amazon Web Services has been the world’s most comprehensive and broadly adopted cloud platform. AWS offers over 165 fully featured services for compute, storage, databases, networking, analytics, robotics, machine learning and artificial intelligence (AI), Internet of Things (IoT), mobile, security, hybrid, virtual and augmented reality (VR and AR), media, and application development, deployment, and management from 66 Availability Zones (AZs) within 21 geographic regions, spanning the U.S., Australia, Brazil, Canada, China, France, Germany, Hong Kong Special Administrative Region, India, Ireland, Japan, Korea, Singapore, Sweden, and the UK. Millions of customers—including the fastest-growing startups, largest enterprises, and leading government agencies—trust AWS to power their infrastructure, become more agile, and lower costs. To learn more about AWS, visit aws.amazon.com.

Source: How Leading Enterprises Are Building Blockchain Innovation On AWS

 

Amazon Is Launching a New Program to Donate Unsold Products, After Reports That Millions Were Being Destroyed

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Amazon wants its third-party sellers to make better use of their unsold or unwanted products that often get dumped — by giving them away to charity.

Amazon is launching a new donations program, called Fulfillment by Amazon (FBA) Donations, for third-party sellers that store their inventory in Amazon’s warehouses in the U.S. and UK, CNBC has learned. Starting on September 1, the donation program will become the default option for all sellers when they choose to dispose of their unsold or unwanted products stored in Amazon warehouses across those two countries. Sellers can opt out of the program, if they want.

The donations will be distributed to a network of U.S. nonprofits through a group called Good360 and UK charities such as Newlife and Barnardo’s. After this story was published, Amazon announced the program via a blog post on Wednesday afternoon.

The new donations program is designed to reduce the amount of inventory that must be dumped from Amazon’s warehouses, helping the environment and putting otherwise wasted products to some use. Recent reports found that Amazon routinely discards unsold inventory, with one French TV documentary estimating Amazon to have destroyed over 3 million products in France last year. Given that Amazon generates the bulk of its sales in the U.S., the number of destroyed inventory in its U.S. warehouses is likely much larger than those found in other countries.

“This program will reduce the number of products sent to landfills and instead help those in need,” Amazon wrote in the email to sellers announcing the launch.

Sellers who spoke to CNBC said the new program makes it cheaper to donate their unwanted inventory. Amazon charges 50 cents to return unsold inventory to sellers, much more than the 15 cents charged for disposal. Sellers destroy their inventory for a variety of reasons, including returns that are no longer usable or for safety issues.

In an email statement to CNBC, Amazon’s spokesperson confirmed the launch of the new program, adding it’s “working hard” to bring the number of destroyed products to zero.

“At Amazon, the vast majority of returned products are resold to other customers or liquidators, returned to suppliers, or donated to charitable organizations, depending on their condition,” Amazon said.

By: Eugene Kim

Source: https://www.cnbc.com/

 

Amazon Reportedly Has a Warning for Sellers Who Offer Products on Walmart.com for a Lower Price

It’s not really a surprise that Amazon wants to offer customers the overall lowest prices on the products it sells in order to capture more sales. And it has created an incredible marketplace for third-party sellers to grow and thrive. But that’s not the entire story. It turns out that the company could also be keeping a close eye on companies that also sell their products at other sites, such as Walmart.com.

That’s according to a recent report by Bloomberg that says that when Amazon finds Marketplace sellers that offer the same product elsewhere for less than the price on Amazon’s site, the company sends those sellers a warning “via a web platform they use to manage their Amazon businesses” and often makes it harder to find the product on its own site. Effectively, the message is: Raise your prices, or else.

Really, there are two aspects of this story that are worth paying attention to.

Play by the rules.

The first is the amount of control that Amazon exerts over its sellers. The company has policies that even dictate how third-party sellers should design the packaging for their products. It also determines how products are displayed and how easily they are found by customers.

Additionally, Amazon runs the third-largest advertising platform, which many sellers find themselves resigned to pay for, lest their products go unnoticed.

Ultimately, Amazon’s would likely prefer sellers to lower their price on its site, however many sellers tell Bloomberg that they have been hit by so many fee increases that the only real course of action is to raise prices elsewhere.

In fact, those same sellers report that when you include advertising, Amazon takes as much as 40 percent of every marketplace sale on the site.

Amazon didn’t immediately respond to my request for a comment, but according to Bloomberg, a spokesperson said in a statement that “sellers have full control of their own prices both on and off Amazon, and we help them maximize their sales in our store by providing them insights on how to be the featured offer.”

That isn’t exactly a denial that it sends the warning.

I think it also takes a little liberty with the meaning of “help them maximize their sales,” especially if “providing them insights” really means “make sure your prices aren’t lower anywhere else.”

The risk of building on someone else’s platform.

The second lesson here is about the risk of building your business on someone else’s platform. The two happen to be more closely related than they might seem.

When your business is selling products online, Amazon certainly has one of the most desirable platforms, considering its vast reach. It makes sense, then, that a business would want to make its products available to as many people as possible. That’s why many sellers list products on a variety of sites like Amazon, eBay, and Walmart.

But at what cost?

If you build a business on someone else’s platform, you allow them to exert considerable control, since you have to be willing to put up with the rules and policies created by that platform. Those rules could change at any time, and your only real option is to change your business or leave. Often, neither is ideal.

As an entrepreneur, it can be tempting to make decisions that help you greatly as you grow, but you should consider what effect those choices will have down the road. Are you able to run your business the way you want, or will you be at the mercy of another company that makes the rules with its own interests first?

Pay close attention to those rules. After all, the one who made them is probably paying close attention to you.

 

By: Jason AtenWriter and business coach @jasonaten

Source: Amazon Reportedly Has a Warning for Sellers Who Offer Products on Walmart.com for a Lower Price

Amazon’s Rising Shipping Costs Eat Into Profits

It turns out that one-day shipping is an expensive endeavor. Amazon reported worse-than-expected profits in its latest quarter, thanks in part to an aggressive effort to slash delivery times down to one day for items ordered on its site.

The e-commerce giant said on Thursday that profits during its second quarter rose 3.6% to $2.6 billion from the same period a year ago. That equates to $5.22 per share, which fell far short of the $5.57 per share that Wall Street analysts had anticipated.

Amazon’s shipping costs surged by 36% to over $8 billion in the last quarter. That is a sharp uptick when compared with the previous three quarters, when shipping costs had risen by around 20%. Amazon has stepped up its investment in its shipping capabilities after promising in April that it would make one-day shipping the new normal for members of Amazon Prime, rather than the two-day shipping that it has long offered.

The company said that it is making progress on the initiative and that free one-day shipping is now available to Prime members on more than 10 million items. “Customers are responding to Prime’s move to one-day delivery—we’ve received a lot of positive feedback and seen accelerating sales growth,” said Amazon founder and CEO Jeff Bezos in a statement.

Bezos has made an Amazon Prime membership, which carries a price tag of $119 a year, a staple in over 100 million households across the country. A big part of the draw is free shipping on millions of items. Amazon has sought to stay ahead of the curve here as retailers like Walmart and Target pile on with free shipping offers of their own, which typically require a minimum order size but don’t charge an annual fee.

It’s also a play to satisfy its most impatient customers. Amazon noted on a call with analysts and investors on Thursday that it hopes one-day shipping will cut down on the number of customers who end up leaving Amazon and buying an item elsewhere because it isn’t available for delivery fast enough.

Amazon also saw a rise in marketing costs during the quarter, as well as an uptick in compensation costs as it continues to grow its workforce. Overall costs rose 21% in the quarter.

Sales increased 20% to $63.4 billion, topping analyst estimates of $62.5 billion. However, investors seemed to focus on the disappointing bottom line. Shares of Amazon slid 2% in after-hours trading on Thursday.

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I am a staff writer at Forbes covering retail. I’m particularly interested in entrepreneurs who are finding success in a tough and changing landscape. I have been at Forbes since 2013, first on the markets and investing team and most recently on the billionaires team. In the course of my reporting, I have interviewed the father of Indian gambling, the first female billionaire to enter the space race and the immigrant founder of one of the nation’s most secretive financial upstarts. My work has also appeared in Money Magazine and CNNMoney.com. Tips or story ideas? Email me at ldebter@forbes.com.

 

Source: Amazon’s Rising Shipping Costs Eat Into Profits

Walmart And Target Are A Step Ahead Of Amazon

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Traditional brick and mortar retailers Walmart and Target are a step ahead of Amazon in the delivery battleground: while Amazon is offering 1-day delivery Walmart and Target are already moving to same-day.

That’s according to retail equity analyst John Zolidis.

“It may be tempting to think that Amazon investing $800 million to move its Prime offer of 2-day shipping to 1-day delivery will put incremental pressure on large retailers,” he says.  “However, this move is not a surprise.  We spoke with Wal-Mart (WMT) CEO Doug McMillon about this in October last year. He told us that same-day delivery, not 1-day delivery, was going to be the real battleground.”

McMillon is right. As was discussed in a previous piece here something has changed in the retailing industry in recent years.

Instead of fading away into the archives of history, brick and mortar retailing has come back to complement and support on-line retailing. Shoppers are placing orders online and are picking up merchandise at neighborhood stores, saving time and avoiding shipping fees.

That’s especially the case for groceries, where speed of delivery is a crucial factor in maintaining freshness.

The merging of online retailing with traditional retailing has provided an advantage to retailers with extensive neighborhood store presence like Walmart and Target. “Both WMT and Target (TGT) are already at a huge advantage over AMZN in this respect — because both retailers already have product stored within a short driving distance of the vast majority of the U.S. population in their respective 1,000’s of stores,” notes Zolidis. “Further, both retailers are offering not just delivery (Target already has same-day delivery via Shipt) but various options for BOPIS (buy online pickup in store).

Amazon, Walmart, and Target Shares YTD

Amazon, Walmart, and Target Shares YTD

Koyfin

Then there are pick up points to enhance convenience. “WMT now has pickup towers in-store and are installing these across the chain, and it has established drive-through pick-up grocery lanes and is continuing to add these at a rapid pace,” adds Zolidis.  “Target is offering similar services and installing dedicated counters for customers to more conveniently grab items on the way home from work or after picking up kids from school. Target will also bring pre-ordered items out to your car in the parking lot.”

The strategy has been paying off. The two retailers have reported a rebound in both online sales and retail sales in recent quarters.

Simply put, Walmart and Target have changed the game in the retailing industry. And they have brought Amazon back into the world of the neighborhood store it once sought to eliminate by acquiring traditional retailers like Whole Foods — and by planning to open more grocery stores around the country to cater to markets not served by Whole Foods, as recently announced.

That’s why Zolidis thinks that investors would be making a mistake selling Walmarts and Target’s shares at this point.

“In our opinion,” he concludes, “it would be a mistake to sell large retailers on this announcement (WMT & TGT) as they have anticipated this for some time and are already rolling-out corresponding services.”

My recent book The Ten Golden Rules Of Leadership is published  by AMACOM, and can be found here. 

I’m Professor and Chair of the Department of Economics at LIU Post in New York. I also teach at Columbia University.

Source: Walmart And Target Are A Step Ahead Of Amazon

Discover Thousands of Profitable Amazon Products in Minutes with this New Fast & Easy to Use Software

ZonASINHunter can download multiple Amazon pages at once using a technology called Parallel Processing, means this software downloads pages using multiple internet connections. That explains why ZonASINHunter gives faster results. The downloading speed is also faster because there are no opened browsers and gets compressed data, which means less memory to use. Plus, you can get more complete product informaton so you can really pick the best products! Here are some plus points of ZonASINHunter compared to other asin code lookup software…..

Source: https://zonasinhunter.com/

 

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