Why Are They Not Being Attacked By The Amazon Effect?

According to the world clothing and shoe net, the retail industry is facing collapse. Last year, there were 6700 stores in the United States, which set a new record in the retail industry.

The rise of the industry is the biggest reason for the retail industry to face "the end of the world". Amazon is the biggest driving force in this pformation.

From books to electronic products.

Amazon has already stirred up the retail industry.

This has also led to bankruptcies that once dominated the retail industry, such as RadioShack, Sports Authority and Toys R Us (Toys R & D).

With its free two day service provided by its Prime membership service, online delivery is easier than ever.

Although Amazon is strong, some retailers have succeeded in isolating themselves from the big business tycoon.

Fifth place: TJX company

Amazon's success in the apparel industry is unquestionable because it will become the largest clothing retailer in the United States this year.

However, a clothing market that is difficult to penetrate by electricity providers is the low price retail industry.

These low-priced items usually come from the excess inventory, cancelled orders and seasonal products of the brand.

For sellers of electricity suppliers, it is also very difficult to imitate the "treasure hunt (seeing cheap goods on the consumer behavior") at low retail prices. In this mode, consumers will never know what they will buy from the Internet next.

Bridget Weishaar, an analyst at Morningstar, explains that in this way of business, it is very difficult to make profits online.

The number of products in this mode is generally large and often sold at a low price.

When you consider the cost of package, return and inventory, these factors will bring obstacles to the sale of these products.

The parent company of TJX TJ Maxx Marshall and Home Goods is the largest low price retailer in the United States. Its sales in the last quarter and last year increased by 4% and 2% respectively.

TJX and its low-cost competitors, such as Ross Stores and Burlington Stores, both of them are chain corporation, have rolled over a wider range of retail businesses in recent years on the strength of their business models.

Unlike most retailers, TJX is still actively setting up stores, which set up 171 stores in the United States last year.

As department stores are struggling and the industry is protected by Amazon, TJX is expected to continue to maintain steady growth.

Fourth place: WAL-MART

WAL-MART has always been a leader in the retail industry, but with the rise of e-commerce and Amazon, it has to make adjustments.

WAL-MART has made some sensible moves, such as buying Jet.com and smaller online brands, raising wages, and investing in improved offline shop services such as setting up online grocery order picking points.

Since then, the company's position has improved unprecedentedly, and has been able to fully protect itself from Amazon's influence.

In the recent quarter, WAL-MART's two-year same store sales increased by 4.5%, the fastest growth in nearly 8 years, and this year will grow by more than 2 percentage points.

WAL-MART expects its earnings per share to grow this year after a previous pullback.

After a slowdown in the fourth quarter, it expects its US electricity supplier sales to grow by 40% this year.

The retail giant has economies of scale and physical stores, and stores within 10 miles of the 90% US population are protected from Amazon's influence.

Services like WAL-MART's online grocery self service attract its rural customers, and these audiences still seem to be able to isolate themselves from Amazon's target, because Amazon focuses its sales on urban consumers.

Third place: Dollar General, an American commodity retailer.

Like in the cheap clothing industry, Amazon is also struggling to sell products such as cigarettes, toilet paper and canned goods, which are also the main products of the company.

Dale's discount chain has covered the rural areas of the United States and has thousands of stores, more than any other retail chain.

In fiscal year 2017, the company opened 1315 new stores with more than 1.4 stores.

It is expected that 900 new stores will be set up in 2018.

Dale's same store sales grew by 3.3% in the latest quarter.

In the past year, it has increased by 2.7%.

Chains like DAL and its rival Dollar Tree can open so many stores because their discount mode protects themselves online.

For Amazon, it is not cost-effective to distribute products worth $5 or less than US $5 separately.

These are the products specially sold by Dale company.

Coupled with the high demand of consumers for these commodities, they are enough to withstand the "Amazon effect".

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Second: good city many companies

Compared with other large traditional retailers, good market has maintained a strong growth momentum in the electricity supplier era.

The same store sales in many cities increased by 5.4% in the last quarter, up 6.6% in the first half of the fiscal year.

Most of the profits of good market come from membership service. The membership service charges $60 membership fee annually to members. Members can enjoy the privilege of buying large quantities of goods at preferential prices in many good market stores.

This membership mode makes the good market business more sticky than ordinary retailers, because many customers in the good market have no direct motivation to return goods, and only have the loyalty to the lowest price.

The renewal rate of the multi City membership service is around 90%, indicating that consumers are still loyal to the membership service even though they are facing competition from Amazon and other electricity supplier companies.

In fact, many Americans have the membership of good city and Amazon Prime, which shows that the two companies are not mutually exclusive but complementary.

The retailer, through offering free two day service (a non perishable order worth US $75), entered the electricity supplier industry and cooperated with the start-up Inascart in fresh products.

These measures will further protect the city from being affected by Amazon and help it expand its market share.

First place: Home Depot

Since the recession, the home industry has always been one of the most powerful industries in the retail industry, because pportation of wood and filling paints is not only difficult but also costly.

The advantage of home market has promoted the rapid growth of home depot, making its market value almost as high as WAL-MART, the world's most valuable entity retailer.

This leading home retailer has maintained strong growth.

Last year, its same store sales in the United States increased by 6.9%.

Home Depot refused to open stores, but instead invested profits in operational improvement and returned principal to shareholders through share repurchases and dividends.

As a result, the company's profit growth exceeded sales growth last year, with earnings per share of 13%.

It is reported that in December last year, home depot considered buying XPO Logistics (XPO specialized in producing heavy equipment such as furniture and household appliances), partly because XPO was not allowed to enter Amazon.

The news indicates that the company is considering its future.

Since Home Depot's business is not very suitable for the electricity supplier mode, most of its businesses should continue to be free from Amazon's influence.

More interesting reports, please pay attention to the world clothing shoes and hats net.