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Good day subscribers thank you so much for joining me today i am jeremy this is a financial education channel and today we’re talking about how amazon is the terminator in every single retailer out there they’re just target practice guys there’s some huge numbers that came out this week that i looked at and i’m just like i’ve been talking about amazon for a while
And how they’re they’re just taking over the retail space but i’m not a lone wolf in this there’s been tons of people out there talking about amazon’s in a kill retail you know they’re killing retailers left and right the the signs are really really starting to come through now and there’s no stopping this well there’s kind of one way of maybe managing to stop this
But i’ll explain that at the end guys there’s maybe one way these retailers have so first off today we have just a barrage of disappointing sales reports come out so companies like kohl’s went down 18 percent today their stock price one day this is a retailer macy’s down almost 15 percent nordstrom down 9% dealers down 9% jc penney’s down over 7% these names just
Got freakin clobbered they just collaborate and these are these are retail names – these are like tech names that could be super volatile and those kinds of things these are our retailers retailers there’s a reason i have an invested in retail in many years it’s probably been at least 2 3 4 years since i’ve been invested in retail in retails the sector i know the
Best out of any so basically i’ve lost the best sector i’m the best in investing in because i won’t touch any retailers because death upon amazon amazon is causing death to these guys one cut at a time so let’s look at some some numbers here and well you can kind of see what i’m talking about so first off kohl’s kohl’s corporation today report is comparable sales
Decreased 2.1 percent in the fiscal months of november in december 2016 combined compared to the prior year period basically you look at that number you’re like okay in 2.1 percent decline that’s not a lot that’s not a lot jeremy well they were expecting a point four percent increase and this is what amazon is doing they’re just slowly taking some sales away it’s
Not just amazon it’s a few other online retailers but it’s mostly amazon that’s could be completely honest they own the online space so what they do they just maybe take 50 hundred million dollars in revenue from this retailer tolls and then maybe 50 100 million from the next one and the next one and these numbers begin to add up let’s look at this here so the
Earnings guidance kohl’s is doing they’re the company now expects its fiscal 2016 diluted earnings per share to be two dollars and ninety two cents to two ninety seven versus a previous guidance of three twelve to three thirty two once again not not like unbelievable numbers like oh my gosh kohl’s is done you know kohl’s is never gonna recover from this it’s all
Over no these aren’t numbers that it’s like it’s this game over it’s slow slices here and there that’s killing these retailers and it’s gonna slowly just keep killing them guys no think about it this way people a lot of people don’t understand what’s really really going on people just think okay someone’s shopping online that means they’re not shop in the store so
That’s that’s just how sales well it’s a lot deeper than that okay first off we see that earnings cat it’s there right that’s earnings is down what kohl’s is gonna have to do now they’re gonna have to layoff employees or they have to cut hours on employees right when they cut hours on employees they’re gonna lose some good workers because those workers are gonna
Have to need it need to go get a new job right so they’re gonna go get a new job somewhere else kohl’s then has to hire someone to fill that old position that 10 or 20 hour weak position he’s probably not as well-trained or just as good of an employee that employee probably he will create a negative shopping experience for maybe just one or two customers right
That’s not a lot you say okay it’s not a lot one or two customers what’s the big deal okay that’s a big deal in itself when you head it up to how many stores happen and i’ve seen this happen in retail employees are so important because people come to a store and they expect good customer service if they feel like they don’t get good customer service some get so
Offended that they’ll never shop there again so that’s a big one another big one is okay amazon let’s say let’s say there’s a long-sleeve shirt okay jeremy he needs a long-sleeve shirt he’s buying for some family member right i should go and i buy it on amazon i used to maybe buy it at retail so now that retailer that has that extra-large – long sleeve shirt
Right in stock now that didn’t get sold to me and it didn’t get sold to anybody else so now what that retailer has to do is they have to go in they clearance that long sleeve shirt now so they have to sell it further the price they paid for or even a price less nevermind that long sleeve shirt probably got touched 50 times an employee how to be paid to fix that
Shirt almost 50 times and whatnot then you go ahead and that’s just so not only did they not get a sale at full price which it wouldn’t made a nice profit on but then they have to sell for a price that’s probably lower than what they paid and that is just a killer for retail and then you say that’s was one person added up times if they’re losing on maybe a hundred
Customers maybe they’re losing a thousand customers a store for christmas shopping season and you type that by five hundred to a thousand stores we’re talking big numbers here guys macy’s came out with numbers that’s another retailer that got killed macy’s today announced that it’s comparable store sales of an own plus license basis declined to point one percent
For the month of november in december once again not a huge number not like oh my gosh macy’s is done it’s all over it’s game over no it’s a 2.1 percent decrease but that’s still a decrease and that’s so painful in retail in the way that hits the bottom line affects the entire business and now macy’s talking about they’re gonna close down a ton of stores and they’re
Actually going to layoff 10,000 employees so big changes coming for macy’s and this is gonna be just a theme that’s kind of seen throughout here now the sales are deftly cohn amazon let’s look at what analysts expect amazon sales to through this quarter holy smokes so year ago they did thirty five point seven billion dollars in the in the christmas quarter basically
That they’re gonna report here in the next few weeks this year they’re expecting forty four point six nine billion we’re talking almost a ten billion dollar increase in revenue ten billion dollars and they might even beat those numbers i wouldn’t be surprised if amazon even beats those numbers and comes with a eleven or twelve billion dollar increase that is
Ridiculous when you take into account that if they’re just stealing one hundred million dollars a week macy’s one hundred million dollars away from kohl’s one hundred million dollars away from diller’s it is so painful those retailers it’s so painful and it creates such an epidemic death it’s just it’s just i would never feel comfortable investing in a retail or deep
Are you guys investing any retailers because i would love to know one retailer out there that you’re confident that they can fight off amazon i cannot think of one retailer out there that can fight off in zon give them a legitimate fight i really cannot they’re just they’re just completely owning the game so and what we had happen and this is like i talked about
With amazon and you know taking over the retail game like i said i was not alone wolf on this has been hundreds of people i’ve seen on cnbc and bloomberg and whatnot have talked about this but it got it got maxed mainly because 2008 and 2009 those were a big recession ears right every retailer out there reported horrible sales you know the macy’s at dillards all
These type of retailers they all had horrible sales of those two years then 2010 to 2014 basically what you had is people the economy got better people were going out and spending they were spending at retail shops or buying a lot of little purchases and so it made retailers sales look really nice so the whole amazon affected in effect that amazon was stealing way
Sales all during that time it didn’t really get to get seen just because the economy was improving so everybody was kind of getting pushed up 2015 we finally began to see some cracks in in the whole concrete here guys and also these retailers also started expecting old you know now we’re instead of a 2% increase so we’re going to be a 1.3 percent decrease actually
And this thing’s slowly started to show on how amazon stealing away these sales then 2016 now we see in this christmas quarter it’s gotten worse because now amazon’s numbers are just compounding in they’re getting bigger and bigger and now a 20% increase in amazon sales last year versus this year this year is a lot bigger hunter on a comparable basis so more sales
Are being taken and it’s just it’s painful for retail so the question is how can any retailer fight off amazon the truth is no retailer as by itself can fight off amazon i would compare it and this is kind of a barbaric like this is really a barbaric comparison but imagine if the united states decided we’re gonna be evil we’re gonna take over every single country
One by one the united states could do that let’s be frickin honest they spend poor military we got all the weapons all you can say okay nuclear bombs exist so maybe if the united states try to take over russia they would launch nuclear bombs the whole world will end or whatever let’s just assume nuclear bombs in you know exist the united states just go country by
Country and take it over and take it over but if a bunch of countries came together to fight off the united states absolutely the other countries will win so its power in numbers so if some of these retailers are smart some of these big ones that still have a lot of money we’re still very profitable right now is the time where they shouldn’t march so like a macy’s
Dillard’s jc penney’s type merger and then you merge with a couple smaller retailers here and there so you can kind of create your own amazon that would be smart because no one retailer out there it doesn’t matter how they’re trying to build their online business and all those things no one’s gonna be able to stop amazon unless it’s a bunch of forces together that
Have a lot of money to go ahead and build out the infrastructure to actually compete with amazon unless these retailers do that they’re just gonna slowly get sliced and diced by amazon it amazon may be the terminator expression wasn’t the best because a terminator you know if you ever seen the terminator movies he just comes in and blasts people right maybe the
Amazon expression maybe that’s like michael myers in the halloween movies have you ever guys ever seen the halloween movies before michael myers he like slowly hunts the people down and you know they’re trying to run away and he’s just walking toward them and somehow he catches on many ends up getting them and then that’s what amazon is amazon just slowly getting
Them slowly one by one and it’s just a little bit here and it’s just it’s doom and gloom for retail i would not invest our retail stock i mean i guess i could say if as it was at the right price of was that like to p/e ratio or something ridiculous maybe help him buy it but it would have to be so ridiculous to get me to buy any type of retail name guys because
How am i supposed to be confident as a long-term investor in that business that they’re gonna be able to fight off the amazon i i cannot be confident let me know if you guys think of any retail or you’re invested in a retailer that you think and legitimately fight alpha amazon and long-term business model will still be intact and all those kinds of things because
I’ll love to hear from you because i just don’t see it i do not see it guys if you came across this video i’m not subscribed yet you may want it we talk personal finance in the channel we talk entrepreneurship and we also talk to stock market just like we did today we usually are a little more happy but today’s a doom and gloom video because this is just a doom
Gloom subject unless you are an amazon stock holder and then yeah thank you for watching guys and have a great day
Transcribed from video
Amazon is the Terminator and every single Retailer is just target practice… By Financial Education
