Market Overview

Have Discount Retailers Remained 'Amazon Proof'?

Share:
Have Discount Retailers Remained 'Amazon Proof'?

The notion that Amazon.com, Inc. (NASDAQ: AMZN) is killing off retail brick-and-mortar stores may not ring true in respect to major discount retailers.

Wal-Mart Stores, Inc. (NYSE: WMT) reported a strong Q2 earnings beat Friday, beating analyst's estimates on revenue by nearly $700 million, generating nearly $121 billion in sales. It was Wal-Mart's eighth consecutive quarter of positive comps.

Wal-Mart's strong quarter may suggest that big discount retailers may be immune from Amazon's e-commerce reign. Many consumers fear that Amazon is becoming a near monopoly and that prices are too high as a result. This leaves room for discount retailers.

Related Link: Losing PayPal May Have Actually Helped eBay

Fortune 500 discount retailer Dollar Tree, Inc. (NASDAQ: DLTR) has been performing quite well this year, up 24 percent year-to-date. "Off price" discount retailer stores may have an edge on Amazon with their lower costs and instant gratification.

Investors may want to keep a close eye on Burlington Stores Inc (NYSE: BURL) and Big Lots, Inc. (NYSE: BIG) coming into their Q2 earnings reports, on August 25 and 26, respectively.

Burlington is up 83 percent in 2016, while Big Lots has delivered an impressive 43 percent return on the year.

Do you have ideas for articles/interviews you'd like to see more of on Benzinga? Please email feedback@benzinga.com with your best article ideas. One person will be randomly selected to win a $20 Amazon gift card!

Posted-In: Earnings Previews Trading Ideas Best of Benzinga

 

Related Articles (AMZN + BIG)

View Comments and Join the Discussion!

The 'Flash Boys' Stock Exchange Goes Online: Why Individual Investors And High-Frequency Traders Should Care

Harvard Explains The Health Effects Of Medical And Recreational Use Of Marijuana