How The Coronavirus And Retail Closures Are Accelerating The Rise Of Amazon
If Amazon dominated the retail market before the coronavirus pandemic began, there’s good reason to think it’ll emerge from the crisis even stronger. With millions of Americans staying home, they’ve turned to online marketplaces like Amazon to order their supplies.
The unprecedented demand has propelled Amazon shares to fresh highs. The stock hit an all-time high on April 16 and is up more than 28% for the year, compared to the S&P 500’s 11% decline.
The outlook is even brighter for Amazon. However, its rise is taking place against a troubling backdrop of financial turmoil in the retail industry and the broader economy.
Brick-and-mortar stores that remain open face disappearing foot traffic, while other
retailers across the U.S. have shut down stores and furloughed thousands of workers.
And while some stores closing their doors have continued to sell online, it hasn’t turned into a boom in revenue like Amazon’s. What does this mean for the retail industry moving forward?