BACKGROUND:
Online retailing has witnessed very rough weather on brick-and mortar retailing
Is this drop justified ?
Regardless of it is good or bad for Amazon, the grocery sector was punished by this news and I don’t think stocks like
FACTS:
- This is just an offer, not a done deal.
- "AMZN"'s plans for WFM (about 450 stores in North America) are unknown (distribution, grocery or integration ?).
- AMZN had prime membership reached 80% in the high income , high education level categories.
- WFM customer demography against KR, WMT, TGT, COST and Loblaws are different. Income levels, education levels, the number of children.
- OPINION, NOT A FACT: It is safe to assume, "WFM is for rich people".
- AMZN buying WFM is enabler to compete head on with WMT, KR, Loblaws, COST, etc.
PROBABILITY:
If AMZN buys WFM today, it might take it four to five years to take on grocery sector. So there is some life left in grocery sector, and there is an opportunity that can be considered.
GAME PLAN: ETF
First Trust NASDAQ Retail ETF (PACF:FTXD). This ETF tracks index of 50 U.S. retailers.
VanEck Vectors Retail ETF (PACF:RTH) index of the 25 U.S. listed companies.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.