topic Re: 6 RETAILERS THAT CAN STAND UP TO AMAZON!!! in Community Chat

6 RETAILERS THAT CAN STAND UP TO AMAZON!!!

Spurt — Wed, 08 Aug 2018 23:21:57 GMT

There have been many discussions on the Forum regarding Amazon's impact on the retail world...

Well here are 6 companies that the experts say can stand up to AMAZON (BTW QVC was NOT one of them!)

6 Retailers That Can Stand Up to Amazon

By Daren Fonda, Senior Associate Editor KIPLINGER

To other retailers, Amazon looks more like a wrecking ball. Booksellers succumbed to the online juggernaut first, followed by most electronics stores. Now whole malls are reeling, along with struggling retailers selling everything from clothing to pet supplies. Things are so bad that a “Death by Amazon” index that tracks the stock prices of 54 retailers—including chains such as J.C. Penney (JCP), Target (TGT) and Walmart (WMT)—sits near a four-year low, according to research firm Bespoke Investment Group, which compiles the index.

Yet a handful of big retailers are finding ways to thwart the Amazon onslaught. Some have carved niches by selling goods that people prefer to buy in person. Others provide services or shopping experiences that can’t be replicated online.

1. TJX COMPANIES ( TJ MAXX, Marshalls, HOME GOODS) ---

TJX specializes in discounted apparel and home goods at more than 3,800 stores. Similar deals abound online. But shoppers keep returning to TJX’s stores for the treasure hunt, aiming to find a gem of a deal off the rack.

TJX’s stores, which include TJ Maxx and Marshall’s, feature an ever-changing lineup of brand-name clothing and designer fashions. Merchandise deliveries arrive in stores several times a week, keeping shoppers guessing about what they’ll find. The stores lack walls between departments, encouraging shoppers to browse for bargains throughout the store.

Online competition doesn’t appear to pose a major threat. TJX’s revenues should reach $35 billion in the 12-month period that ends in January 2018, up 5.4% over the prior fiscal year, estimates Bank of America Merrill Lynch, which rates the stock a “buy.” Profits are also rising, along with TJX’s dividend, which the firm recently hiked by 20%—increasing its payout for the 21st consecutive year.

2. NORDSTROM-With mall traffic declining as people spend more time and money online, Nordstrom would seem like a risky bet. Despite the threat posed by online competition, Nordstrom’s customer base appears to be sticking with the department store. The company serves a more affluent, “fashion focused” client than most department stores, says Bespoke, making it less likely that Nordstrom shoppers will buy clothing on Amazon. Nordstrom also sells a high percentage of exclusive and private-label goods that aren’t available elsewhere.

Nordstrom’s attempts to attract more budget-conscious shoppers seem to be working, too. The firm is expanding into the off-price market with Nordstrom Rack, which is bringing in new customers and now accounts for about 30% of total sales. Nordstrom is also blending online shopping and in-store experiences. Customers can reserve apparel online to try on in stores, and arrange for curbside pickup of items purchased online.

3. HOME DEPOT-Home Depot leads the market for home renovation. Amazon sells tools and other home-improvement products. But it’s not in the business of selling and shipping bulky items, such as drywall or lumber. If you want a granite countertop, you’ll probably want to see it in a showroom, such as Home Depot’s.

showroom, such as Home Depot’s. Nor is Amazon a player in renovation services, which Home Depot provides.

4. COSTCO- Their main weapon against Amazon is the warehouse club’s thriving grocery business. About 82% of shoppers visit Costco primarily to buy groceries. Costco members shop on Amazon primarily for electronics, books and clothing, with groceries accounting for just 25% of purchases, says Barclays. Moreover, Amazon Fresh deliveries cost $15 a month, on top of a $99 annual membership in Amazon Prime. Costco may be able to beat Amazon’s food prices, too, because the warehouse club’s shoppers buy bulk items that cost less per unit.

5. BEST BUY-

A few years ago, Best Buy was written off as a company that “didn’t need to exist” in the age of e-commerce, says investment research firm Bespoke. But a new CEO, who took over in 2012, made some major changes that revived both the business and the stock.

The company decided to match Amazon’s prices and those of other big box retailers, says Bespoke, and it started highlighting interactive experiences in its stores, luring shoppers to browse and try out stereos, TVs and other electronics. Best Buy also made a big push into services with its “Geek Squad” for technical support and Magnolia home-theater design studios.

The payoff: Sales and profits have been rising steadily, and the stock has gained 63.1% in the past year, beating Amazon’s 45% return. “Best Buy is a great example of how to compete in the age of Amazon,” says Bespoke

6. ULTA BEAUTY-

Yes, you can buy beauty products online. But you can’t get a haircut or manicure over the internet. Ulta’s winning formula is to sell both beauty goods and full-salon services at its 974 stores. Salon guests spend three times more than non-salon customers and shop two times more frequently, the company says. Ulta’s salon revenues are rising at a 20% annualized pace, more than double the industry growth rate.

Ulta’s expansion plans include opening more stores; it’s aiming for a long-term total of 1,400 to 1,700. The firm is also boosting its internet-based business. And it’s finding success with its loyalty program, which recently surpassed 21 million members, up from 9.4 million in 2011.

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Re: 6 RETAILERS THAT CAN STAND UP TO AMAZON!!!

Spurt — Wed, 08 Aug 2018 23:24:38 GMT

And another retailer thats standing up to Amazon is another surprise--ETSY!!!

The crafts marketplace has managed to hold its own against a bigger, better-funded competitor that offers perks Etsy can't match. How did it do that?

Lisa Schmeiser

Apr 30, 2018 at 12:34PM

Etsy's (NASDAQ:ETSY) turnaround story has been gaining steam. When Josh Silverman took over as CEO in May 2017, he was facing heavy investor pressure to curb expenses, reorient corporate culture, and boost revenue. Over the past year, he has focused on new initiatives -- boosting buyer peace of mind by outlining credit card security measures, running sales, and debuting holiday promotions -- while also shedding jobs. The results: A strong fiscal performance in the back half of 2017, culminating in a 21% rise in annual revenue to $441 million, and swinging from a $29.9 million loss in 2016 to $81.8 million in net income in 2017.

That Etsy managed this feat in the face of amplified competition from Amazon (NASDAQ:AMZN) is impressive. Amazon's an undisputed giant in e-commerce: It notched $51 billion in net sales in the first quarter of 2018 (though not all from retail sales), a 43% increase over the year-ago quarter, and at the midpoint of guidance is estimating 38% year-over-year sales growth in the second quarter. And Amazon recently confirmed that it has "exceeded 100 million paid Prime members globally." Etsy, meanwhile, has 1.9 million active sellers and 33.4 million active buyers.

Amazon's been aiming for Etsy for years

Amazon's repeatedly expanded into the handmade-products market that is Etsy's wheelhouse. It rolled out its Amazon Handmade market in 2015 (it now offers items in 10 categories) and launched the Amazon Handmade Gift Shop in October 2017, offering "thousands of giftable, handcrafted items for every holiday, milestone or occasion." Amazon offered last-minute deliveries of artisan goods ordered as late as Christmas Eve in 2017.

Etsy has reported that its holiday sales tend to drop off in mid-December because customers doubt vendors' abilities to deliver quickly, and they don't have the inducement of free shipping that other e-commerce giants offer.

Despite Amazon's intensive handmade push around the holidays last year, Etsy logged its third consecutive quarter of sales growth and is forecasting 21%-23% revenue growth in 2018. The number of active buyers on its site jumped 16.8% to 33.4 million in the fourth quarter. So Amazon hasn't managed to topple Etsy in the micro-retailing craft marketplace yet. Why?

Here's why Etsy has managed to hold off Amazon

Etsy's got the first-to-market advantage. The site's been around for nearly 13 years and it's at the point where it's so thoroughly associated with a specific type of online market, it's in danger of sliding from trademarked name to verb. (See also "Xeroxing something," even when the photocopier in question is a Canon, or "I'm going to Google it" instead of "I'm going to use an online search engine.")

Etsy focuses on both ends of the sale. While critics have dismissed Etsy's platform as appealing only to niche customers -- people who are really into vintage Hmong throw pillow covers, for example -- CEO Silverman has steered the company so it deftly threads the needle between Etsy's two big customer constituencies: those buyers looking for something specific and special and the thousands upon thousands of small-scale vendors hoping to reach out to them.

The proof is in the Q4 2017 results. Revenue climbed 23.6% to $136 million year over year, but what's really interesting is the rise in seller service usage. The number of active sellers jumped 10.6% year-over-year to 1.9 million and 54% of those used at least one of Etsy's services, compared to 52% in the previous year. Fifty percent of sellers used Etsy payments (up from 46%), and 28% used Etsy shipping labels, up 18%.

IMAGE SOURCE: GETTY IMAGES.

Silverman has emphasized offering more services to optimize the seller experience and improve their bottom lines, and since these services run on both single-transaction models (a one-time fee for listing each item in a store or closing a sale) and monthly subscriptions (paid product placement, website design), there are multiple revenue streams there. In 2017, the company earned 59% of its revenue from seller services such as payments and shipping and 41% from individual listing fees. It expects promoted listings to drive its seller services revenue growth in 2018.

Etsy simplifies the customer experience. Etsy's entire site is keyed around acting as a marketplace for what Silverman calls "microsellers," or artisanal vendors who specialize in crafts, handmade good, and curated vintage finds. By contrast, Amazon Handmade is but one of the site's many lines of business -- and it shows: The handmade department is the 17th option on the 22-item "departments" menu on the site's main navigation, and only one of 28 product clusters on its site directory page.

Etsy's more appealing to sellers. Etsy is more cash-flow-friendly to small sellers because it releases funds immediately after the sale closes; Amazon holds the funds until the order ships. And Etsy can offer lower overhead. The seller fees for Amazon Handmade start at $40 per month for the required professional membership; Etsy has no seller fees, but charges only by product listing after the first 40 listings. Etsy also has much different marketing policies from Amazon: Sellers are permitted to link to their personal vending sites, cultivate promotional email lists, and include store branding in orders they fulfill. Since microsellers are in business for themselves first and foremost, Etsy acting as aplatform for that business instead of the platform for that business may go a long way to win hearts and minds.

Subsequently, Etsy's got a vote of confidence from industry analysts. Morgan Stanley recently concluded that Etsy's business is "relatively immune from Amazon disruption."

Re: 6 RETAILERS THAT CAN STAND UP TO AMAZON!!!

stevieb — Wed, 08 Aug 2018 23:08:25 GMT

@Spurt As you know, I've been saying for years that TJX has a winning formula. Oh how I wish I'd started shopping there sooner and oh how I wish I'd landed some stock in the company back when it might have made me rich today! Are the TJX stores perfect? No, far from it and there's a lot of variability between stores and even within the same store. They don't offer the same variety of merchandise they once did and their policies aren't as customer friendly as they once were, but they just keep winning and I'm still checking out the stores on a regular basis, as, it seems, are many others... I'm still finding things I like...

Re: 6 RETAILERS THAT CAN STAND UP TO AMAZON!!!

Spurt — Wed, 08 Aug 2018 23:18:18 GMT

@stevieb

Yep, us real shoppers NAILED IT!!!.......And I think this says it all as to why customers keep coming back to their stores....

TJX’s stores, which include TJ Maxx and Marshall’s, feature an ever-changing lineup of brand-name clothing and designer fashions. Merchandise deliveries arrive in stores several times a week, keeping shoppers guessing about what they’ll find.

Compare that to little ole QVC and Q's philosophy--which is to expand social media platforms and show LIMITED merchandise.....(BTW I posted Q's results for the 2nd Quarter under Q-Talk)................

That's my only gripe that all TJX stores arent on the same level---the one by my cousin is awful--its on par with Ross---dirty and nasty stores, while the closest Marshalls, TJ/Homegoods to me are fabulous!!!

Yep we shouldve bought stock.....

Re: 6 RETAILERS THAT CAN STAND UP TO AMAZON!!!

willdob3 — Wed, 08 Aug 2018 23:33:29 GMT

@Spurt

I disagree; none of those stores can stand up to Amazon. One of them does/offers all that Amazon does. They may be good stores but “the experts” are wrong.

TJMAX here is not worth visiting. I’ve heard good things about other locations.

Re: 6 RETAILERS THAT CAN STAND UP TO AMAZON!!!

kitcat51 — Wed, 08 Aug 2018 23:41:23 GMT

I don't buy anything from Amazon, I do buy from all the retailers mentioned in the article & etsy too.

Re: 6 RETAILERS THAT CAN STAND UP TO AMAZON!!!

Spurt — Wed, 08 Aug 2018 23:58:24 GMT

@willdob3 wrote:
@Spurt

I disagree; none of those stores can stand up to Amazon. One of them does/offers all that Amazon does. They may be good stores but “the experts” are wrong.

TJMAX here is not worth visiting. I’ve heard good things about other locations.

@willdob3 @bikerbabe

We have a combo TJ/HOME GOODS and that store is FABULOUS---clean and great merchandise, great deals---it's always packed....the checkout lines are always long---if you go during the week or on the weekends...... Such a wonderful variety and you always see something new and different.......Thats their strength!!!

And Best Buy beat them at their own game...

Re: 6 RETAILERS THAT CAN STAND UP TO AMAZON!!!

bikerbabe — Wed, 08 Aug 2018 23:53:45 GMT

I don’t do Costco.
TJMaxx and Marshall’s are awful.
Love HomeGoods.
Like Nordstrom but rarely shop there.

Re: 6 RETAILERS THAT CAN STAND UP TO AMAZON!!!

millieshops — Wed, 08 Aug 2018 23:53:47 GMT

@SpurtI've seen that list. Very interesting to me as an investor more than as a consumer. I've curtailed my buying so much in recent years that I can't always make my decisions based on my kind of buying habits, so when I see Nordstrom has figured out a way to raise its horizons, that interests me even though I've probably cut my personal buying there by about 98%. Same with all the TJX stores - I haven't been buying in any of them, but at least there I've never spent all that much.

Home Depot, on the other hand, still offers products I need so I go there although there's no way I'll ever voluntarily hire their people to do renovation or installation. Where I live, I've seen too many bad jobs. But even that could be location oriented.

Of course as an investor I do wish I'd had the vision to buy big when they were young, but as for spending with them, I can't decrease it at all - haven't spend anything with them for several years. That makes me an anomaly ecinomically, but that's fine with me.

Re: 6 RETAILERS THAT CAN STAND UP TO AMAZON!!!

Spurt — Wed, 08 Aug 2018 23:59:07 GMT

@kitcat51 wrote:
I don't buy anything from Amazon, I do buy from all the retailers mentioned in the article & etsy too.

@kitcat51

I am not a fan of Amazon and dont buy from them either....I dont like the way the gobble up companies (and with it jobs)...........

I DO shop Best Buy for my electronics, and shop at lot a the TJX companies.....I occasionally go to Costco, and Home Depot, I have bought from Etsy too......I haven't gone yet to Nordstrom Rack but maybe I should..............

Re: 6 RETAILERS THAT CAN STAND UP TO AMAZON!!!

Bhvbum — Thu, 09 Aug 2018 00:04:35 GMT

Besides Amazon: Costco, TJX stores, Ace Hardware, QVC, Walmart, Target. That’s it. Sometimes I will make a grocery stop someplace else besides Walmart in town, like Food Lion, but that’s pretty much it.

I never ever go to a mall, and I don’t buy online from any place else so every other business could go away and I would not miss them.

Re: 6 RETAILERS THAT CAN STAND UP TO AMAZON!!!

Mominohio — Thu, 09 Aug 2018 00:27:03 GMT

I'm not a fan of Amazon, though I have made purchases and will again as needs arise, so I'm glad to hear there is hope of other companies standing up to them.

I guess what I don't get is how people who hate Walmart for all the regular reasons (drives small local business out, low wages, corporate greed) seem to still love Amazon, who according to a lot that has been written in the past, doesn't have much better business practices than Walmart.

At least with Walmart having stores in just about every town in America, you can shop there and support local jobs.

Re: 6 RETAILERS THAT CAN STAND UP TO AMAZON!!!

panda1234 — Thu, 09 Aug 2018 00:51:19 GMT

@Spurt wrote:
@stevieb

Yep, us real shoppers NAILED IT!!!.......And I think this says it all as to why customers keep coming back to their stores....

TJX’s stores, which include TJ Maxx and Marshall’s, feature an ever-changing lineup of brand-name clothing and designer fashions. Merchandise deliveries arrive in stores several times a week, keeping shoppers guessing about what they’ll find.

Compare that to little ole QVC and Q's philosophy--which is to expand social media platforms and show LIMITED merchandise.....(BTW I posted Q's results for the 2nd Quarter under Q-Talk)................

That's my only gripe that all TJX stores arent on the same level---the one by my cousin is awful--its on par with Ross---dirty and nasty stores, while the closest Marshalls, TJ/Homegoods to me are fabulous!!!

Yep we shouldve bought stock.....

@Spurt Did you know you could order online with TJX? They have some very high end things that are not in the store, $500. wallets.

Re: 6 RETAILERS THAT CAN STAND UP TO AMAZON!!!

Goldengate8361 — Thu, 09 Aug 2018 01:30:56 GMT

Amazon is so much better than any if these options, it’s not funny. Amazon rules! Love everything about Amazon.

Re: 6 RETAILERS THAT CAN STAND UP TO AMAZON!!!

KathyM23 — Thu, 09 Aug 2018 01:40:34 GMT

TJM does not appeal to me. I have only found one item of clothing there. It was an orchid color suede jacket and that was years ago. I do like their jewelry and have bought several pieces.

Re: 6 RETAILERS THAT CAN STAND UP TO AMAZON!!!

NYC Susan — Thu, 09 Aug 2018 02:06:02 GMT

@Goldengate8361 wrote:
Amazon is so much better than any if these options, it’s not funny. Amazon rules! Love everything about Amazon.

Purely from a consumer's point of view, I agree. The CS at TJ Maxx is inconsistent, and I've had some pretty awful experiences with both Best Buy and Ulta. I don't doubt that other retailers are doing well, but Amazon wins hands-down for me.

Re: 6 RETAILERS THAT CAN STAND UP TO AMAZON!!!

bonnielu — Thu, 09 Aug 2018 02:20:50 GMT

We have a Costco and a Walmart. The others are not in our area. And personally I like Amazon. Customer service second to none.

Re: 6 RETAILERS THAT CAN STAND UP TO AMAZON!!!

GCR18 — Thu, 09 Aug 2018 02:42:43 GMT

I have a love hate relationship with Amazon. I do shop there occasionally, but often find their prices high and quality lacking if the product isn't a brand name. They sink a lot of money back into their business. I think walmart is a sleeping giant and is starting to slowly wakeup. They are not risk takers and don't like to part with their money. If they can get past that and open their wallet, they may be a real rival to Amazon.

Re: 6 RETAILERS THAT CAN STAND UP TO AMAZON!!!

stevieb — Thu, 09 Aug 2018 02:47:51 GMT

It comes down to personal preference... I still often like to go and browse in person. I don't want to buy everything on-line and I don't want to have to deal with returns by mail. I also don't want to sift through literally hundreds of web pages to browse. Amazon has it's place in my shopping experience, but it's become more limited. It's useful when I know exactly what I want or when I can narrow down my browsing interest to a relatively narrow range of options... I'm not interested in endless on-line browsing and while their customer service is solid it can also be capricious, as can be delivery, Prime or not. I also grew weary of the endless price see-saw experience... Each of these entities has their strengths and their weaknesses and I don't think any of them can necessarily replace another, nor should they...

Re: 6 RETAILERS THAT CAN STAND UP TO AMAZON!!!

Catiele — Thu, 09 Aug 2018 03:03:43 GMT

It’s Walmart for me. Fast and free shipping. Go to Macy’s and Kohl’s. TJ Max and Marshall’s are hit or miss.