MORGAN STANLEY: Here are the 4 industries Wall Street thinks Amazon will destroy the fastest (AMZN)

You've probably heard the term "Amazoned" recently. It refers to Amazon's power to erase billions of dollars of competitor market cap by simply announcing that it's entering a new sector.

It's an effect most clearly demonstrated by Amazon's recent acquisition of Whole Foods, which has sent shockwaves across competing grocery stores, brick-and-mortar retailers, and even pharmacies.

To see how far this Amazon effect will go, analysts at Morgan Stanley surveyed their peers to see which sectors will be the most impacted by Amazon in the near- and long-term.

Most analysts surveyed, more than 40 in total, said that food retail would be the sector hit the hardest. Amazon entering the food retail space through its Whole Foods purchase has already erased billions from grocer's market caps.

7 shock-worthy facts about Amazon
See Gallery
7 shock-worthy facts about Amazon
7.5 percent of Seattle's working-age population are Amazon employees

Amazon has more than 300,000 employees worldwide, and 40,000 in Seattle alone.

As a portion of the city's working-age population — roughly 528,000 — that comes out to 7.5% of the city working at Amazon.

For perspective, if the same portion of New York City's adults worked for one company, that company would have about 488,000 locals on staff.

Amazon accounts for 43% of all online sales

Amazon used to be a way to buy books online; today, it's the default buying site for just about everything, especially for people who have Amazon Prime.

An analysis by Slice Intelligence released in February found that 43% of all US online retail sales were done through Amazon in 2016.

That's up from 33% in 2015 and 25% in 2012.

1 out of every 4 US adults has Amazon Prime.

Speaking of Amazon Prime, the company now counts approximately 63 million people among its subscriber base, or about 25% of the total US adult population.

That number may underestimate the true coverage, however, since it doesn't account for multiple adults in one household all sharing the same Prime account.

Amazon ships 1.6 million packages a day

Amazon fulfillment is a beast of its own.

A report from 2013 (the latest year for which data are available) found Amazon shipped 608 million packages that year, or 1.6 million packages a day.

As of 2015, Amazon estimated its fulfillment centers were within 20 miles of 31% of the US population, and within 20 miles of 50-65% of its core, same-day-accessible market.

That's enough cardboard to span all of West Virginia

A back-of-the-envelope calculation reveals all those packages (not including padded envelopes) yield roughly 26,400 square miles of cardboard.

The total land area of West Virginia, meanwhile, is just north of 24,000 square miles.

Given the speed of Amazon's shipments, the company could blanket the whole US in cardboard in about five months.

45,000 robots roam the floors of Amazon's warehouses

To help those shipments leave the warehouses on time, Amazon relies on a growing fleet of autonomous robots that fetch packages from their shelves and bring them to human employees.

The 45,000 robots live across 20 fulfillment centers in the US. In 2016, the company increased the fleet 50% from its prior head count of 30,000.

Amazon is more valuable than all major brick-and-mortar retailers combined

The sum total of those investments in infrastructure and supply chain management have made Amazon by far the most valuable retailer in the United States.

Amazon's $356 billion valuation is so big, it's larger than Wal-Mart, Target, Best Buy, Macy's, Kohl's, JCPenney, and Sears combined.

With the recent acquisition of Whole Foods, there are no signs the retailer has any plans of slowing down.


In second place were department stores, with 49% of analysts saying that's the sector Amazon would disrupt the most in the next 12 months. This makes sense as consumer habits have been shifting towards ecommerce amid the retail apocalypse.

In the non-consumer space, Wall Street sees logistics and transportation as the most vulnerable to Amazon, with 43% of analysts voting for this option. Retail real estate investment trusts came in second, with 36% of the vote. Amazon owns significantly less warehouse space than people think, with Walmart way out in front by that measure. The Whole Foods purchase adds about 1 million square feet of space to Amazon's warehouse holdings, but the company is looking to expand, which analysts think could upset the retail real estate industry.

 Morgan Stanley's survey also asked analysts about which industries were mostly safe from Amazon's reach. They replied saying dollar stores would take the longest for Amazon to disrupt in the consumer space, while healthcare and commercial REITs would be the safest in the non-consumer space.

As for the sector that has been the most unfairly impacted by Amazon? Well, that would be auto parts retailers, according to those surveyed.

Shares of Amazon are up 27.55% this year.

Click here to watch Amazon's stock price move in real time...

amazon stock priceMarkets Insider

NOW WATCH: SRI-KUMAR: Watch the bond market for signs of a recession

See Also:

SEE ALSO: Everyone is focused on the wrong area of tech right now

Read Full Story
  • DJI26639.87128.820.49%
  • NIKKEI 22522259.7441.840.19%
    Hang Seng29963.24-0.02-0.00%
  • USD (PER EUR)1.12-0.0043-0.38%
    USD (PER CHF)0.98-0.0049-0.49%
    JPY (PER USD)111.82-0.1140-0.10%
    GBP (PER USD)1.29-0.0046-0.35%