Investors may be overestimating the threat Amazon poses to the likes of Costco, Home Depot, and Macy’s.
In the past few months, numerous major retailers have seen their share prices undermined by concerns about competition from e-commerce juggernaut Amazon.com.
Costco Wholesale stock plunged after Amazon announced its intent to expand in the grocery business by buying Whole Foods. Home Depot stock fell earlier this month on the news that Sears Holdings would begin selling Kenmore appliances through Amazon. And while Macy’s has been posting poor results lately, its stock price has plummeted in a manner out of proportion to its sales declines.
The example of Best Buy shows that these fears may be overblown. Five years ago, it seemed to many people that Amazon would drive the big-box consumer-electronics giant out of business. Yet Best Buy has found ways to survive and even thrive in the face of competition from…
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