Two Stocks: Different Paths
Friday, June 15, 2012 at 03:45PM It's hard to believe but seven years ago this month, shares of Amazon.com (AMZN) and Best Buy were both trading within $1 of each other, around $37 per share. Over the last seven years, though, the stocks have taken two entirely different paths. Since then, AMZN has rallied close to 500% and is currently trading near $220 per share. BBY, on the other hand, is down 47% and is trading at $20 per share.
While the differences in the paths of these two retailers is noteworthy enough, it also provides a broader illustration of the evolving retail environment from bricks to clicks. In 2005, online sales accounted for 6% of total retail sales. Since then, the sector has increased its total share of sales by nearly 50% to just under 9%. At the same time, electronics and appliance retailers have seen their share of total sales drop to 2.0% of total sales, which is the lowest reading since at least 1993.
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