Global retail giant Amazon.com Inc. (AMZN) comprised about 44% of all U.S. e-commerce sales and 4% of retail sales in 2017, according to One Click Retail, an e-commerce analytics provider. (See also: Amazon Forces Suppliers to Play by Its Rules.)
“Every major trend we see across 2017 can be explained by the fact that more of Amazon's core demographic (millennials) are growing up: they're increasingly owning homes, raising children, and buying a TON of stuff to go with it,” wrote One Click Retail’s Chief Executive Officer (CEO) Spencer Millerberg in an annual review of Amazon.
“This raises the question: Will this create long-term changes and tailwinds for Amazon? Will 300-ish Whole Foods stores be enough to compete meaningfully in the brick-and-mortar space against Walmart’s 4,000+ stores?” he wrote, speaking to Amazon’s push into the physical retail space with its $13.7 billion acquisition of the organic food grocer announced in June 2017.
There’s been plenty of speculation that Amazon will continue its acquisition spree as it expands its brick-and-mortar presence, with analysts highlighting players such as Target Corp. (TGT), Lululemon Athletic Inc. (LULU) and Bed Bath & Beyond Inc. (BBBY) as potential takeout targets.
One Click Retail found that the fastest-growing product groups on the Seattle-based retailer’s platform last year included luxury beauty, pantry items, grocery and furniture, which grew 47%, 38%, 33% and 33% respectively over last year. The highest grossing product group was consumer electronics, which made up over $8 billion in sales for items such as Amazon’s Echo devices.
As Amazon builds out its private label business, experiments with its virtual assistant Alexa along with its new Whole Foods stores and continues to beef up its Prime membership base, we should expect more of the same in 2018, added Millerberg. (See also: Amazon Will Buy Target in 2018: Gene Munster.)