5 Retailers That Aren’t Afraid of Amazon

Surviving the onslaught of Amazon.com Inc (NASDAQ: AMZN), yet alone thriving under its thumb, requires brick-and-mortar retailers to have one or more of the following characteristics: products that consumers do not purchase online, strong brand loyalty and in-store expertise that Amazon can’t provide in its online environment. And the following five companies are all Amazon-proof stocks.

Home Depot Inc (NYSE:HD), Lowe’s Companies, Inc (NYSE:LOW), Best Buy Co Inc (NYSE:BBY) Costco Wholesale Corporation (NYSE:COST) and Macy’s Inc (NYSE:M) all definitely fit the bill.

If you’re looking to buy the shares of brick-and-mortar retailers, then you should undoubtedly purchase those that are unaffected, or as close to unaffected as possible, by Jeff Bezos & Co. Here’s why:

Amazon-Proof Retail Stocks: Home Depot and Lowe’s (HD, LOW) Amazon-proof stocksBBY) img class="alignnone wp-image-744266 size-full" src="https://investorplace.com/wp-content/uploads/2016/04/bbymsn.jpg" alt="Amazon-proof stocks" width="728" height="400" srcset="https://investorplace.com/wp-content/uploads/2016/04/bbymsn.jpg 728w, a href="https://investorplace.com/wp-content/uploads/2016/04/bbymsn-300x165.jpg"investorplace.com/wp-content/uploads/2016/04/bbymsn-300×165.jpg/a 300w, a href="https://investorplace.com/wp-content/uploads/2016/04/bbymsn-73x40.jpg"investorplace.com/wp-content/uploads/2016/04/bbymsn-73×40.jpg/a 73w, a href="https://investorplace.com/wp-content/uploads/2016/04/bbymsn-55x30.jpg"investorplace.com/wp-content/uploads/2016/04/bbymsn-55×30.jpg/a 55w, a href="https://investorplace.com/wp-content/uploads/2016/04/bbymsn-250x137.jpg"investorplace.com/wp-content/uploads/2016/04/bbymsn-250×137.jpg/a 250w, a href="https://investorplace.com/wp-content/uploads/2016/04/bbymsn-200x110.jpg"investorplace.com/wp-content/uploads/2016/04/bbymsn-200×110.jpg/a 200w, a href="https://investorplace.com/wp-content/uploads/2016/04/bbymsn-162x88.jpg"investorplace.com/wp-content/uploads/2016/04/bbymsn-162×88.jpg/a 162w, a href="https://investorplace.com/wp-content/uploads/2016/04/bbymsn-160x88.jpg"investorplace.com/wp-content/uploads/2016/04/bbymsn-160×88.jpg/a 160w, a href="https://investorplace.com/wp-content/uploads/2016/04/bbymsn-65x36.jpg"investorplace.com/wp-content/uploads/2016/04/bbymsn-65×36.jpg/a 65w, a href="https://investorplace.com/wp-content/uploads/2016/04/bbymsn-100x55.jpg"investorplace.com/wp-content/uploads/2016/04/bbymsn-100×55.jpg/a 100w,https://investorplace.com/wp-content/uploads/2016/04/bbymsn-91×50.jpg 91w, a href="https://investorplace.com/wp-content/uploads/2016/04/bbymsn-78x43.jpg"investorplace.com/wp-content/uploads/2016/04/bbymsn-78×43.jpg/a 78w, a href="https://investorplace.com/wp-content/uploads/2016/04/bbymsn-170x93.jpg"investorplace.com/wp-content/uploads/2016/04/bbymsn-170×93.jpg/a 170w” sizes=”(max-width: 728px) 100vw, 728px” />Source: Austin Kirk via Flickr

Like Home Depot and Lowe’s, Best Buy offers human expertise about complicated topics. Of course, Amazon can’t provide similar expertise. Additionally, the quantity and complexity of popular tech products are increasing all the time, making BBY employees even more valuable to consumers.

Wearables, drones, virtual reality and augmented reality devices, and virtual assistants are just some of the new tech products that are likely to spark many questions by consumers.

Moreover, BBY continues to benefit by being the only national, dedicated, sizable consumer electronics brick-and-mortar retail chain.

Investors should buy Best Buy stock in order to benefit from all of these attributes.

Amazon-Proof Retail Stocks: Costco (COST) Amazon-proof stocksSource: Shutterstock

In June 2017, The Wall Street Journal noted that 9% of the giant retailer’s “customers account for 46% of its annual sales.”

Clearly, the company has a significant group of hardcore, high-spending, highly devoted fans who aren’t going to start buying their clothes on Amazon anytime soon.

The company also benefits from being in a sector — high-end apparel — that Amazon is never going to totally dominate, since many people like to touch and feel expensive clothes before buying them.

Additionally, Macy’s earlier today reported fourth-quarter earnings per share of $2.82, versus the consensus outlook of $2.71, showing that it is still very profitable.

Finally, the valuation of Macy’s stock, which has a forward price-earnings ratio of 9.41, is still quite undemanding and attractive, so investors should buy Macy’s stock at current levels.

As of this writing, Larry Ramer did not own the shares of any of the companies mentioned above. 

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