From Mattresses To Groceries, Survey Shows Consumers Don't Always Prefer Amazon

About 63 percent of households are now Amazon.com, Inc. AMZN Prime members, according to a survey by KeyBanc Capital Markets. But consumers haven’t completely withdrawn from the brick-and-mortar experience.

The Rating

KeyBanc analysts maintained a Sector Weight rating on Amazon.

The Thesis

The analysts found that 73 percent of survey respondents still shop at malls, with certain transactions more likely than others to take place offline.

“Amazon is popular for apparel, shoes and consumer electronics purchases, but less popular for mattresses and large home appliances,” they wrote in a Monday note.

Other categories that are still escaping Amazon’s dominance include groceries, watches, jewelry and wearable technology. Consumers who are “very likely” or “completely likely” to buy home decor, furniture or cosmetics on Amazon are also proportionately rare.

The competitive circumstances bode well for the likes of Tempur Sealy International Inc TPX, Whirlpool Corporation WHR, Kroger Co KR and Ethan Allen Interiors Inc. ETH.

Notably, though, other sector pressures and consumer spending habits led KeyBanc to negatively interpret survey results for home decor, furniture and mattress companies.

Price Action

At the time of publication, Amazon was set to open up 1.8 percent at $1,431.

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