Amazon (AMZN) is up to 5.7% of the S&P 500’s market cap. While other large tech-adjacent names have had a similarly large impact on the aggregate market this year, the e-commerce giant remains somewhat unique for its scale and penetration into every possible market. At the same time, it’s interesting to note that many other retailers have been able to thrive in this environment. Target (TGT), Wal-Mart (WMT), Home Depot (HD), and Lowe’s (LOW) are all examples of retailers that have leveraged a combination of unique offerings and extremely rapid digital sales growth. 100% YoY sales growth for digital channels is the norm for many major retailers at this point. Unfortunately, while some companies have been able to thrive in the current environment, smaller and more specialized retailers haven’t been able to drive traffic as well. Two recent de-listings removed from our index this month (ASNAQ and TLRDQ) are examples of stocks that haven’t been able to keep up.
Our “Death By Amazon” index was created many years ago to provide investors with a list of retailers we view as vulnerable to competition from e-commerce. In 2016, we also created our “Amazon Survivors” index which is made up of companies that look more capable of dealing with the threat from online shopping. To see how the two indices have been performing lately and view the full list of stocks that make up the indices, please read our newest report on the subject available to Bespoke Premium and Bespoke Institutional members.