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!)
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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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