Retail

The Extraordinary Size of Amazon in One Chart

on December 30, 2016 at 12:49 pm

The Extraordinary Size of Amazon in One Chart

The Extraordinary Size of Amazon in One Chart

IT’S BIGGER THAN MOST BRICK AND MORTAR RETAILERS TOGETHER

The Chart of the Week is a weekly Visual Capitalist feature on Fridays.

What has more value: all major publicly traded department stores in the United States, or Amazon?

Amazon takes the cake, and its no contest.

Add together the market caps of Walmart, Target, Best Buy, Nordstrom, Kohl’s, JCPenney, Sears, and Macy’s, and they amount to a significant $297.8 billion:

Brick & Mortar Store 2016 Value ($B)
Total $297.8
Sears $1.1
JCPenney $2.6
Nordstrom $8.3
Kohl’s $8.8
Macy’s $11.0
Best Buy $13.2
Target $40.6
Walmart $212.4

However, it’s not enough to beat the Amazon machine.

The online retailer alone is worth $356 billion, making it one of the largest companies by market capitalization in the world.

THE DEATH OF TRADITIONAL RETAIL

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:

Big Box and Department Store Sales ($ Billion)
Big Box and Retail Store Sales

Retailers without the right strategy saw their market caps plummet.

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).

Here’s the full damage over the last 10 years to brick and mortar stores:

Store 2006 Value ($B) 2016 Value ($B) % Change
Total $400.4 $297.8 -26%
Sears $27.8 $1.1 -96%
JCPenney $18.1 $2.6 -86%
Nordstrom $12.4 $8.3 -33%
Kohl’s $24.2 $8.8 -64%
Macy’s $24.2 $11.0 -55%
Best Buy $28.4 $13.2 -54%
Target $51.3 $40.6 -21%
Walmart $214.0 $212.4 -1%

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.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s