JPMorgan has released a report suggesting that Amazon will be the largest retailer in the US by 2022, passing Walmart.
CNBC writes that "Amazon’s U.S. retail business is the “fastest growing at scale,” according to the company’s analysts. Between 2014 and 2020, Amazon’s U.S. gross merchandise volume, or GMV — a closely watched industry metric used to measure the total value of goods sold over a certain time period — has grown 'significantly faster' than both U.S. adjusted retail sales and U.S. e-commerce, the analysts said."
The date proposed by JPMorgan is several years ahead of one predicted just a couple of months ago by Edge by Ascential, which said it would happen in 2025.
CNBC goes on:
Amazon’s pandemic-fueled sales surge has helped it grow its slice of the e-commerce market. JPMorgan estimates Amazon expanded its share of the U.S. e-commerce market to 39% in 2020, up from 24% in 2014.
"The accelerated adoption of e-commerce has also provided a lift to other areas of Amazon’s business. Amazon is on track to 'become one of the largest delivery companies' in the U.S., analysts at Bank of America wrote in research published Tuesday … This has allowed Amazon to deliver most of its own orders. Amazon currently delivers packages for other businesses in the U.K. and could one day expand that service to the U.S."
- KC's View:
The only mild surprise here is that JPMorgan thinks it'll happen next year. Emphasis on the mild.