17:18 31 January 2013
Amazon, the largest online retailer in the world, announced that it has achieved total sales of $21.3billion during the final quarter of 2012. The store’s massive sales figures rose 23per cent from 2011, which meant more consumers did their Christmas shopping over the Internet.
Meanwhile, international sales figures also consistently reported a 20per cent increase to a record-breaking $9.09billion.
Following the report, the value of Amazon shares climbed 8per cent to $282 as its operating profits, which add up to a total $405million, exceeds the forecast the company submitted to Wall Street back in October.
Amazon’s investors are also pleased with the increase in sales, especially now that the online retailer has had to spend billions in new warehouses to meet the rising demand for products sold on the site.
As Amazon continues to grow, brick-and-mortar retailers in Britain have entered into the most devastating months ever recorded in terms of sales. Among several struggling stores in Britain, three has officially called it quits; these include Jessops, HMV, and DVD rental chain Blockbuster.
Retail analyst Neil Saunders translates these major changes in the retail scene. He is reported by The Telegraph saying: “The failure of high street players will just drive more people to Amazon.”
He gives an example to prove his point: “Not that Jessops has gone, if you want a camera, you’re more likely to go to Amazon.”
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