Here’s the other side of the demise of the shopping mall, Amazon’s shares may rise to $1,000 a share on Friday.
The web-based retailer’s shares are up 32.5% year-to-date with a market cap of $480B, while brick and mortar retail chains file for more bankruptcies so far in 2017, more than any other year.
Since its 1997 IPO CEO Jeff Bezos has seen his shares rise roughly 57,400%, which has made him the second richest person in America and is poised to pass Microsoft co-founder Bill Gates to become number 1 on the list.
Ironically, Bezos’ next retail act is opening stores. Amazon is launching book stores — after decimating the industry — and is taking on the grocery store business by opening smaller food stores to take on Wal-Mart.
On the brick and mortar retailers, Sears reported a quarterly profit for the first time in over 2 years, while CEO Eddie Lampert battles to keep the once-proud American retailer struggles to remain viable.
Sear’s share “spiked” Thursday up 13% to close at $8.48 with a market cap of $870M.
If you look into Sears’ “earnings” however, the profit was not derived from selling more clothing to customers, but Lampert selling its Craftsman brand and beginning a program to slash $1.25 billion in costs.
That’s not how you grow a business.