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The Masked Tulip

Amazon Gains As Morgan Stanley Sees Retail Shift

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Here's an interesting article in the WSJ about a shift to the likes of Amazon which is believed to mess up all those speciality retailers.

It is US focussed but you can imagine the same applies to the likes of HMV, Dixons, Borders, etc, here in the UK.

http://online.wsj.com/article/BT-CO-20110330-712300.html

Posted for the trends in retailing as opposed to stock info.

"We believe the market is underestimating the positive share shift from specialty retail to Amazon," Devitt wrote in his report.

In particular, he predicted that traditional retailers in both the books and electronics segments are likely to continue losing sales to the company. Troubles at book sellers Borders Group Inc. (BGP), which filed for bankruptcy protection last month, and Barnes & Noble Inc. (BKS), which is closing 200 underperforming stores, present a $6.7 billion opportunity for Amazon in this business.

He also believes sales at electronics retail giant Best Buy Inc. (BBY) "have reached an inflection point," though Amazon's share gains in that category will likely take longer to play out than in books.

"We believe speciality retailers will experience accelerated erosion of market share to Amazon," he wrote. "As investors gain clarity on the sources for Amazon's sales growth, they will better understand the length of the runway and overall story."

Devitt also said his $290 "bull case" for the stock is starting to play out. This scenario is built on the assumption of adding market share in traditional retail categories as well as the company "actively" participating in digital distribution of media products such as video, music and books.

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Its a good point about how those book retailers shrinking should provide more market for Amazon.

On the electronics I am not so sure. I am willing to pay more to buy from a local retailer, just incase there is a problem and I have to take the device back and get a new one. Dell computer for example is building a retail presence

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Its a good point about how those book retailers shrinking should provide more market for Amazon.

On the electronics I am not so sure. I am willing to pay more to buy from a local retailer, just incase there is a problem and I have to take the device back and get a new one. Dell computer for example is building a retail presence

Amazon have a no quibbles, collect and replace policy.

Dell have a quibble till you give up policy.

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Amazon have a no quibbles, collect and replace policy.

Dell have a quibble till you give up policy.

Yepp, gotta love Amazon for that. Brilliant service.

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Yepp, gotta love Amazon for that. Brilliant service.

Agreed. The one time I had to call Amazon up because they sent the wrong thing, they did a great job of sorting it out but after the phonecall was over I felt a strange sense of deflation. Apparently other companies have conditioned me to expect a battle of wits with a call centre monkey every time I call to tell them they screwed up.

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  • 284 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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