With national retail brands closing, liquidating and being acquired almost daily, online shopping is taking over and wreaking havoc on the industry along the way. The latest proof that e-tail now reigns supreme? A market cap of Amazon puts the company at $390 billion, a staggering number that is larger than eight of America’s biggest retailers combined.
To be sure, that list includes mass retailers Best Buy, Macy’s, Target, JCPenney, Nordstrom, Walmart, Kohl’s and Sears, according to Credit Suisse analysts who released the information last week. Adding to the glory, the company’s stocks have skyrocketed 36% over the last year.
And if that’s not enough evidence that online is taking over, today Alibaba announced its third quarter earnings, which rose 38% to $2.57 billion (17.2 billion yuan) ending December 31, 2016. Revenue climbed 54% from a year ago to 53.2 billion yuan. Alibaba has been looking to compete with Amazon head on for the last few years but has had a hard time gaining American market share due to questionable and counterfeit goods sold in its marketplace.
Others struggling in the wake of online’s rise are Neiman Marcus, Sears and Kohl’s, who have implemented new plans and initiatives to mix store and online shopping. That’s not to mention newly-closed brands like The Limited and American Apparel, both of whom recently filed bankruptcy and will now sell strictly online.