Friday, February 2, 2018

Amazon still nowhere near its potential

Chain Store Age

With 38.2% sales growth in the final quarter, Amazon was one of the clear winners over the holiday season. Admittedly this number is flattered by the inclusion of Whole Foods Market revenue, but even when this is stripped out, Amazon still increased sales by an impressive 27.9%. Given this is above the trajectory of recent growth, it is safe to say that Amazon shows no signs of slowing down.

Excluding the impact of Whole Foods, product sales grew by 20.2% overall. While this is impressive and indicates Amazon is gaining market share across many categories, it also underlines the fact that Amazon’s primary growth opportunities now lie in services.. . . more