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SunTrust Analyst: Amazon May Snag Half of Online Holiday Sales

SunTrust Analyst: Amazon May Snag Half of Online Holiday Sales
(DreamsTime)

Wednesday, 15 November 2017 02:46 PM

Almost half of all online shopping reportedly will be on Amazon.com this holiday season, according to analysis from SunTrust SunTrust Robinson Humphrey.

"Given a record breaking Prime Day in 2Q, continued momentum in 3Q, and the fact that this is just the second holiday season offering monthly Prime memberships, we expect a record-breaking holiday season for the company," CNBC.com quoted analyst Youssef Squali as writing.

"Adobe is projecting online holiday shopping sales to hit $107.4 billion in the U.S.," wrote Squali in a note to clients.

For its part, Amazon.com said on Wednesday it will offer more discounts and steeper price cuts at Whole Foods Market on many organic foods and groceries popular during the holidays.

The plan was announced just ahead of Thanksgiving and is on the heels of price cuts in August when Amazon completed its $13.7 billion acquisition of Whole Foods.

“Price cuts are permanent,” Brooke Buchanan, a spokeswoman for Whole Foods, told Reuters in an email.

Investors have been closely watching for price cuts at Whole Foods, concerned that cheaper prices would further hurt U.S. grocers already struggling to stay competitive with Amazon and Wal-Mart Stores, which are locked in an intense battle for market share.

“Ever since Amazon bought Whole Foods Market, this is exactly what the other grocery store competitors have been fearing,” Fort Pitt Capital analyst Kim Forrest told Reuters.

“Other grocers are going to have to come back in competitive replies – and it could be better service, better products and better pricing.”

Amazon, which forayed into brick-and-mortar retailing with Whole Foods, could upend the grocery industry with its deep pockets and large presence, analysts have said.

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

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Almost half of all online shopping reportedly will be on Amazon.com this holiday season, according to analysis from SunTrust SunTrust Robinson Humphrey.
suntrust, amazon, half, online, sales, holiday
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2017-46-15
Wednesday, 15 November 2017 02:46 PM
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