A long piece in The Guardian on how and why Amazon keeps CEOs in possibly dozens of different sectors up at night.
With fingers in nine of the top ten US industries by GDP, Amazon has inspired a “Death By Amazon index” from Bespoke Investment Group. Fifty-four retail stocks the firm considers most vulnerable to Amazon. Between February 2012 and January 2018, Amazon’s value rose 560%, the S&P index rose 102%, and the Death by Amazon index grew just 42.8%.
Amazon still has a lot of room to grow. It dominates e-commerce, but that’s only about 9%, (according to eMarketer) of the total retail market in the US. With the acquisition of Whole Foods and the launch of the concept store Amazon Go – which has no cashiers and no checkouts – the tech giant can start to take on the other 91%.
And it wouldn’t be surprising if Amazon were to sell the technology that powers the futuristic stores to other retailers so that they too could automate their stores and cut jobs. Doing that would allow the company to keep track of the sales made by its competitors – just as it does on Amazon.com – and use that data to inform its decisions about other retail categories to move into.