- The number of bankruptcies in retail is increasing and the probability of new bankruptcies is still high.
- In the online environment, the competition is intensifying their efforts precisely at the moment when Amazon has finally reached some kind of profitability.
- Price wars could make the whole online growth story a bad experience for investors. We’ll use Wayfair as an example.
We’re seeing significant structural shifts in the retail environment where companies that were once considered blue chips are slowly going bankrupt, think Sears Holdings (NASDAQ: SHLD), while online retailer Amazon (NASDAQ: AMZN) is crushing it.
The question many ask is: are retailers cheap now and online retailers expensive, or is it the other way around? To answer this question, it’s extremely important to look at how the competition in the online space will affect margins. We’ll look at some situations and try to come to the best option for your portfolio. More →