It’s been well-documented here…
Amazon (AMZN) is a serial killer, and its prey is retailers — ones who never thought of building a moat.
Now, I’ll be the first to concede…
In the old paradigm, retailers didn’t need to think much about moats:
The term “economic moat,” coined and popularized by Warren Buffett, refers to a business’ ability to maintain competitive advantages over its competitors in order to protect its long-term profits and market share from competing firms. — Investopedia
As long as your store enjoyed 1) a courteous staff, 2) competitive pricing and 3) a good location — all was well.
But today? Those three metrics — standing alone — would put you out of business in six months. If not sooner.
And on the heels of Amazon’s acquisition of Whole Foods, which closed this week, investors are convinced that every retailer is in Amazon’s cross hairs.
Not so fast!
Bespoke Investment Group recently compiled an “Amazon Survivors” Index, which includes retailers they believe can survive Amazon’s onslaught.
After digging into the data, we found some timely and actionable surprises that warrant your immediate attention.
Look for downtrodden — but not out — retailers for triple-digit gains.
Everybody loves a comeback… especially on Wall Street. And they still exist in the beleaguered retail industry.
Look no further than the best-performing stock in Bespoke’s “Amazon Survivors” Index — Lumber Liquidators Holdings Inc. (LL).
You’ll recall the nation’s largest hardwood flooring company was rocked in 2015 by a scandal involving Chinese-produced flooring that it sold containing unsafe levels of formaldehyde.
The company shed more than 80% of its market value in just six months.
But boasting a one-year gain of 118%, today it’s the best-performing stock in Bespoke’s “Amazon Survivors” Index.
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