Amazon has completely changed the way most people shop, putting numerous retailers out of business, or at the very least leaving them struggling to get customers to enter their stores.
However, there are a few stores that have managed to survive Amazon’s all-encompassing presence. Anyone who is considering investing in retail stock in the coming year may want to consider the following hardy Amazon competitors.
1. Etsy
Etsy has successfully carved out a niche for itself by creating a large crafts marketplace where creative artists can sell products ranging from jewelry to paper models. While Amazon has attempted to push Etsy out of the marketplace by creating Amazon Handmade, a couple of years ago, statistics show that sellers are sticking with Etsy instead of moving to its larger rival. Etsy’s shipping may not be as fast as Amazon’s, but it has clearly satisfied both its customers and clients. There is no indication that it will not remain dominant in its field for the foreseeable future.
2. Five Below
Five Below has found the right balance between turning a profit and providing its customers good value for their money. As the name implies, all items at the store are sold for five dollars or less, making Five Below similar to many other stores such as Dollar General, Dollar Tree and Family Dollar. However, while these stores are losing value and customers, Five Below is gaining value thanks to the fact that it has been able to continually find trending products that can be offered for sale at a low price. While Amazon certainly offer low-cost products that could compete with Five Below, the company can serve the over 9 million households in the United States that rely on cash rather than the traditional banking system.
3. Party City
Party City has managed to keep its customer base in spite of the fact that Amazon offers many of the same items that Party City does. The store is particularly successful during the Halloween season; in fact, up to 20% of all its profits are generated during this time. At the same time, it offers a wide range of products that are successful year-round and is continually increasing the number of goods that can be purchased on its online retail site. Unlike many other successful Amazon competitors, Party City stocks are cheap, making them a great investment opportunity for those who have limited financial resources.
4. Ultra Beauty
Ultra Beauty, like many other stores, has its own e-commerce website. However, most of its success can be credited to the fact that many consumers prefer to purchase beauty products in person rather than via the internet. Ultra Beauty dominates its field, and currently sells its products at nearly 1,000 stores. Like Amazon, it works with individual companies to provide a wide range of products; at the same time, it also has a popular loyalty program with over 24 million members and teams of beauty care specialists who work in a salon setting to provide make-up applications, analyze skin types and offer personalized advice to help customers pick the products that best suit their individual needs. Given all that this store has to offer, it is not surprising that Ultra Beauty stocks have risen by 30% in the last year alone.
5. Walmart
Amazon may have a higher market capitalization than Walmart, but the traditional retail titan remains successful. It is second to none in the grocery market, and the fact that it is offering grocery delivery and pick-up services could enable it to easily remain ahead of Amazon Fresh. Furthermore, Walmart makes it easy for customers to buy products online and then pick them up from the store instead of having to pay for shipping. This service allows buyers to bypass Walmart’s notoriously lousy store atmosphere.
It is important to note that the retail market is continually changing. As most investors know all too well, large chain stores that were popular in times past are now either out of business or floundering. However, Amazon has not been able to successfully bulldoze all of its competitors. The retailers mentioned above have managed to survive by carving out a niche for themselves, suggesting that the Amazon model is not yet the ideal standard.
Regards,
Ethan Warrick
Editor
Wealth Authority
