These 8 industries have been threatened by Amazon's domination (AMZN)

AP Photo/Pablo Martinez Monsivais

President Donald Trump tweeted on Thursday that Amazon is “putting many thousands of retailers out of business.”
Amazon‘s aggressive expansion into new industries has terrified competitors.
Here are eight industries threatened by Amazon’s growth, from shoe stores to healthcare businesses.

President Donald Trump seems determined to take down Amazon as the e-commerce juggernaut expands its reach.

“Unlike others, they pay little or no taxes to state & local governments, use our Postal System as their Delivery Boy (causing tremendous loss to the U.S.), and are putting many thousands of retailers out of business!” Trump tweeted on Thursday morning.

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I have stated my concerns with Amazon long before the Election. Unlike others, they pay little or no taxes to state & local governments, use our Postal System as their Delivery Boy (causing tremendous loss to the U.S.), and are putting many thousands of retailers out of business!

Trump has a history of criticizing Amazon. The president argues that Amazon has unfairly received prime tax benefits and preferential treatment from the US Postal Service, hurting brick-and-mortar retailers.

While Amazon denies that its aggressive growth hurts competitors, many analysts and executives agree that, often, when Amazon enters a new industry, rivals suffer.

These are eight industries that have been threatened by Amazon’s increasing domination:

Food delivery businesses

Blue Apron

Blue Apron’s disastrous IPO reveals how big of an impact Amazon’s entrance in a new industry can have on competitors.

The company went public in June. When Amazon filed a trademark application for “prepared food kits” on July 6, Blue Apron’s stock sank 11%.

Amazon’s success has continued to plague Blue Apron. In January, the company’s shares fell more than 6% after One Click Retail’s 2017 Grocery Report showed that Amazon had made impressive gains in the US grocery market.

Shoe stores

AP/Bennett Raglin

As customers shop for shoes directly from Amazon, analysts say companies like Foot Locker and Finish Line are in danger. In August 2017, UBS analyst Michael Binetti downgraded both companies, saying it is “almost certain” that sneaker retailers will lose market share to Amazon.

“The disruption that has characterized the retail industry recently is not going away,” Foot Locker’s CEO Richard Johnson said in a call with investors in February. “Consumers want experiences, they want cool products, and they want it all — fast.”

Foot Locker plans to close approximately 110 stores this year after closing 147 stores globally in 2017.

Grocery stores

Getty/Stephen Brashear

Amazon bought Whole Foods in August 2017, which dealt a massive blow to US grocery stores as it forced its way into the brick-and-mortar market and threatened to drive prices down.

The retailer is already the largest seller of groceries online. It’s estimated to have 18% of the US online grocery market, which is double the second-place share held by Walmart.

By having access to brick-and-mortar locations, the company is able to expand its reach across the US and use these stores as distribution centers for online orders. And, Amazon is building out its own brick-and-mortar concept, with the first Amazon Go store opening in Seattle in January.

See the rest of the story at Business Insider