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Will Amazon.com Inc. Be the Only Retailer Having a Merry Christmas?

2 January 2016

From The Motley Fool:

When the next round of earnings reports come out, it may be just one company that will able to say it had a merry Christmas: Amazon.com. Where it seems just about every other retailer struggled to make their holiday sales goals, the e-commerce leader breezed along, shipping out hundreds of millions of products and growing its lucrative Prime membership program in the process.

The numbers seem staggering. Amazon said over 200 million more items were shipped via Prime this holiday season and it sold twice as many Amazon devices as it did last year, which included its new Fire tablet that out of the millions of products for sale on its website, was “the No. 1 best-selling, most gifted and most wished-for product.”

Moreover, in just the third week of December alone, it signed up 3 million new members to its $99 per year Prime service.

. . . .

While estimates vary on just how many Prime members there are, ranging anywhere from 40 million to 80 million — and Amazon itself is cagey with precise numbers, preferring instead to say Prime has “tens of millions of members worldwide” — they’re a valuable commodity to the e-commerce leader.

It’s estimated Prime members spend some $60 billion annually on the site and tend to spend double the amount non-members do. Thus the influx of new Prime members this Christmas, whatever the final tally turns out to be, will be a gift that keeps on giving for Amazon.

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Yet even with all the heavy discounting going on, store traffic fell. RetailNext said store traffic tumbled 10.4% from the year ago period for the weekend before Christmas with sales down 6.7%.

Link to the rest at The Motley Fool