Amazon Poised to Leap Into Top 10 U.S. Retailers
July 22, 2013,
NEW YORK-Amazon.com is on course to become the nation's ninth largest retailer this year, according to a research report from KeyBanc Capital Markets.
The Internet retailer ranked 11th among U.S. retailers last year. An executive summary of the report projected that Amazon's U.S. retail sales will total $41 billion, which would propel it to ninth.
In addition, Amazon generates more in gross merchandise value (which adds in sales by third parties who use the site and/or its supply chain). Factoring this in, Amazon generated $68 billion in total gross merchandise value, putting it right behind Target as the nation's fourth largest retailer, the report said.
Also, Amazon's advertised prices are consistently lower--9 percent less than Best Buy, Bed Bath & Beyond, Staples, Williams-Sonoma and PetSmart, for example.
Amazon is also making continual gains in market share in some categories. In consumer electronics, the Web retailer accounted for market share of 10 percent last year, up from 1 percent in 2004.
It is also poised for increased market share in home furnishings, home improvement and pet products. "While we do not expect a material impact on these sectors in the coming quarters," the summary said, "we believe product overlap and Amazon's growth trajectory implies growing risk over the next five years."
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