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Bespoke Investment: 10 Stocks to Survive Amazon's 'Retail Apocalypse'

Bespoke Investment: 10 Stocks to Survive Amazon's 'Retail Apocalypse'

By    |   Thursday, 24 August 2017 02:17 PM

Bespoke Investment Group, which created a prescient "Death by Amazon" list, recently unveiled its new index of retailers that can survive the Amazon.com Inc. onslaught.

The new "Amazon Survivors" list contains retailers that have "their own brands or focus on goods that Amazon ignores," CNBC quoted Bespoke as saying.

"To compliment our existing … index of companies most vulnerable to Amazon's rise, we are introducing a new index of retail companies that should be less exposed to the DBA [death by Amazon] threat," Bespoke Investment Group said in a note to clients. "Our new index is composed of retail and apparel companies that have their own brands or focus on goods that Amazon ignores."

Here are 10 top-performing stocks on Bespoke's “Amazon Survivors” list:

  • CarMax (KMX)
  • Children's Place (PLCE)
  • Etsy (ETSY)
  • Home Depot (HD)
  • Lithia Motors (LAD)
  • Lumber Liquidators (LL)
  • PetMed Express (PETS)
  • RH (RH)
  • Tiffany(TIF)
  • Wayfair (W)

To be sure, one of Amazon's harshest critics is President Donald Trump.

The president last week once again unloaded on  Amazon, tweeting that the company is hurting other retailers and implying that it’s killing industry jobs across the U.S.

Amazon is causing "great damage to tax paying retailers," Trump said in a Twitter post Wednesday, causing shares in the online retailer to fall.

“Towns, cities and states throughout the U.S. are being hurt - many jobs being lost!” Trump said in the tweet.

Trump’s reference to “great damage” echoes chatter in Washington and academic circles that Amazon and other technology companies may have become too big and powerful, Bloomberg reported.

Apple Inc. Alphabet Inc., Microsoft Corp., Facebook Inc. and Amazon are the biggest companies in the world by market cap and dominate many facets of everyday life. Some critics have even suggested that they should be broken up.

During the presidential campaign, Trump claimed Amazon was a monopoly that he would go after for antitrust violations if he were elected. Amazon takes about 70 percent of all e-book sales and 30 percent of all U.S. e-commerce. “Believe me, if I become president, do they have problems. They’re going to have such problems,” Trump said in February 2016. In the U.S. it isn’t illegal to have a large market share.

A rash of chains have filed for bankruptcy this year, including Payless Inc., Gymboree and HHGregg Inc. and RadioShack. And the biggest department-store companies, such as Macy’s Inc., Sears Holdings Corp. and J.C. Penney Co., are shuttering hundreds of locations. The total number of store closings is expected to hit a record in the U.S. this year, with Credit Suisse Group AG analyst Christian Buss estimating that the number could exceed 8,000.

On the other hand, Amazon is hiring rapidly. The online behemoth has pledged to hire more than 100,000 workers by 2018 and has been holding job fairs all over the U.S. In some cases, fired department store workers are ending up at Amazon fulfillment centers.

Amazon has been battling a number of politicians from both the U.S. and Europe about its stance on tax. In the U.S., Amazon previously fought to only collect sales taxes for purchases in states where it doesn’t have a physical presence. Now it has a legion of distribution centers and collects sales tax in every state that has one.

The U.S. retailer is currently fighting the European Union over its tax bill, while in March it won a $1.5 billion tax dispute with the IRS.

(Newsmax wire services and Reuters and Bloomberg contributed to this report).

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Bespoke Investment Group, which created a prescient "Death by Amazon" list, recently unveiled its new index of retailers that can survive the Amazon onslaught.
bespoke, investment, stocks, survive, amazon
Thursday, 24 August 2017 02:17 PM
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