Amazon overtakes Wal-Mart as the largest US retailer in 2022 — JP Morgan

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Amazon is on track to overtake Wal-Mart as the largest retailer in the United States in 2022, according to a JP Morgan survey released Friday.

According to the company’s analysts, Amazon’s US retail business is “largest and fastest growing.” Between 2014 and 2020, Amazon’s US Total Merchandise (GMV) is a carefully monitored industry indicator used to measure the total value of merchandise sold over a specific period of time. Adjusted retail sales in the US and e-analysts in the US said.

Neither Amazon nor Wal-Mart have announced a GMV in their quarterly results, but JP Morgan estimates that Amazon’s GMV is growing faster than its largest retail competitor. According to JP Morgan analysts, Amazon’s GMV in 2020 is estimated to be $ 316 billion, up 41% year-on-year, and Wal-Mart’s GMV is estimated to be $ 439 billion, up 10% year-on-year.

JP Morgan analysts Christopher Hovers and Doug Ammas said on Friday, “Based on current estimates, Amazon believes it could outperform Wal-Mart and become the largest retailer in the United States in 2022.” Said.

Horvers and Anmuth drive Amazon’s top-line growth, including expansion into “large, low-penetration categories” such as groceries and apparel, strong sales growth for third-party sellers, and “prime flywheel” I emphasized some factors that I think are. Amazon CEO Jeff Bezos said in April that the company had more than 200 million prime subscribers, up from 150 million in early 2020.

The coronavirus pandemic has rapidly accelerated the adoption of e-commerce, consolidating Amazon’s dominance in the retail industry. Consumers trapped in their homes sought Amazon for a lot of products, from toilet paper to training supplies. They also relied on Amazon for services that might not have been possible otherwise, such as online grocery delivery.

Amazon’s pandemic-fueled sales surge has helped Amazon grow part of the e-commerce market. JPMorgan estimates that Amazon has increased its share of the US e-commerce market from 24% in 2014 to 39% in 2020.

The accelerated adoption of e-commerce has also improved other areas of Amazon’s business.

Bank of America analysts said in a survey released Tuesday that Amazon is on track to “become one of the largest shipping companies” in the United States.

Amazon is estimated to deliver 7 billion packages in 2021, surpassing the approximately 6 billion packages that UPS expects to deliver in the United States this year.

In recent years, Amazon has quietly built delivery operations comparable to UPS, FedEx, USPS and more. The network of warehouses and last mile delivery stations continues to grow, maintaining a vast logistics operations with planes, trucks and vans.

This allows Amazon to deliver most of its orders.Amazon is currently offering packages for other companies in the UK and may one day expand its service to the United States.

MWPVL estimates that it processed about 5 billion of the 7.35 billion packages that Amazon shipped in 2020. According to Bank of America analysts, UPS and USPS processed the remaining 1.25 billion and 1.1 billion, respectively.

Amazon overtakes Wal-Mart as the largest US retailer in 2022 — JP Morgan

Source link Amazon overtakes Wal-Mart as the largest US retailer in 2022 — JP Morgan

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