Amazon.com Is Bigger Than Most Brick and Mortar Retailers... Put Together

Visual Capitalist  |


The Extraordinary Size of Amazon in One Chart

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 Wal-Mart (WMT), Target (TGT), Best Buy (BBY), Nordstrom (JWN), Kohl’s (KSS), JC Penney, Sears, and Macy’s (M), it amounts to a significant $297.8 billion:

Brick & Mortar Store2016 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 Amazon.

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 (AMZN) 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)

Retailers without the right strategy saw their market caps plummet.

Sears (SHLD) went from being worth $27.8 billion to $1.1 billion (a 96% decrease), while JC Penney (JCP) 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:

Store2006 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.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer.

Companies

Symbol Name Price Change % Volume
JWN Nordstrom Inc. 38.38 -1.31 -3.30 2,774,950 Trade
TGT Target Corporation 127.22 -0.30 -0.24 2,970,365 Trade
SHLD SHLDQ Sears Holdings Corporation n/a n/a n/a 0
KSS Kohl's Corporation 48.28 -0.84 -1.71 2,858,555 Trade
BBY Best Buy Co. Inc. 84.79 -0.56 -0.66 2,646,051 Trade
WMT Walmart Inc. 120.29 0.53 0.44 5,366,541 Trade
AMZN Amazon.com Inc. 1,760.94 0.61 0.03 2,747,909 Trade

Comments

Watchlist

Symbol Last Price Change % Change
AAPL

     
AMZN

     
HD

     
JPM

     
IBM

     
BA

     
WMT

     
DIS

     
GOOG

     
XOM

     
BRK.A

     
FB

     
JNJ

     
WFC

     
T

     
NFLX

     
TSLA

     
V

     
UNH

     
PG

     

World Economic Forum at Davos 2019 - Joseph Weinberg CEO PayCase, Chairman Shyft

Matt Bird sits down with Joseph Weinberg CEO PayCase, Chairman Shyft at the World Economic Forum at Davos 2019