Amazon, the world’s most valuable retailer

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The retail giant is valued at no less than $1.4 trillion, close to four times what it was in late 2016, when its market cap hovered around $350 billion. Last year alone, the company shipped 2 billion packages around the world. Amazon’s market cap alone is bigger than the nine biggest U.S. retailers put together. With nearly a 39% share of U.S. e-commerce retail sales, Amazon’s market cap has grown 2,830% over the last decade. Amazon has also been extremely busy in the acquisition area. One of the most important acquisitions was WHOLEFOODS market for $13.7B. Accounting for the lion’s share of Amazon-owned physical stores, Whole Foods has 508 stores across the U.S., UK, and Canada. 

Where does Amazon also make money?

Amazon also owns gaming streaming platform Twitch, which it acquired for $970 million in 2017. Currently, Twitch makes up 73% of the streaming market and brought in an estimated $300 million in ad revenues in 2019. Amazon also has a cash-generating cloud service, Amazon Web Services (AWS), and through a collection of diversified enterprise-focused services. AWS, with estimated operating margins of 26%, brought in $9.2 billion in profits in 2019, more than half of Amazon’s total.

Harsh times for U.S. retailers.  one estimate projects that at least 25,000 U.S. stores will fold over the next year. Neiman Marcus, JCPenney, and J.Crew have all filed for bankruptcy.

10 Largest Public US Retailers     Market Value July 1, 2020            Market Value July 1, 2010              

Walmart                                            $339B                                                 $179B   

Costco                                               $134B                                                 $24B     

Amazon                                             $1,400B                                             $50B     

The Kroger Co.                                $26B                                                   $13B     

Walgreens Boots Alliance             $36B                                                   $26B     

The Home Depot                             $267B                                                 $47B     

CVS                                                     $84B                                                   $40B     

Target                                                $60B                                                   $37B     

Lowe’s                                               $102B                                                 $29B     

Best Buy                                            $23B                                                   $14B

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Mark Kalin

Achiever, Competition, Futuristic, Maximizer, Significance

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