Can Amazon Stock Take Advantage of Shoppers’ Changing Habits?
Amazon.com, Inc. (NASDAQ:AMZN) and Amazon stock must be absolutely ecstatic, as early numbers coming out of online Black Friday show that more purchases were made in the online space versus a brick-and-mortar shop.
An estimated 51% of shoppers’ holiday budgets were projected to be spent this weekend via e-commerce, according to a survey by consulting firm Deloitte. This is up about two percent from last yea, and marks the first time that Thanksgiving shopping occurred more in cyberspace versus the physical world. (Source: “”Cyber Friday,” anyone? Online sales besting in-store sales,” CBS News, November 25, 2016.)
But that doesn’t mean that all physical stores are dead during the yearly holiday shopping ritual. Kohl’s Corporation (NYSE:KSS) reported record Thanksgiving sales, even though online sales had recently eaten into the department store’s profits.
But if consumers are hoping that they can avoid the line by jumping on the internet, they might not be too pleased with what they find. On Friday, Macy’s Inc (NYSE:M) web site was the online equivalent of our biggest shopping nightmares, with lines so packed that consumers had to wait sometimes as long as 30 seconds to connect to the site.
This, of course, is 30 seconds in Internet time, which we all know follows Interstellar rules, where one second online is actually hours in the real world. Amazon stock would certainly prefer that their lines are processed much smoother.