Fears of a death by Amazon may be overstated in shares of the few companies that can effectively resist the Jeff Bezos-led juggernaut, according to a team of Jefferies analysts.
"Amazon's planned purchase of Whole Foods further widened the valuation spread between consumer stocks the markets views as resistant to the AMZN threat and those viewed as vulnerable," the analysts wrote. "That's opened up opportunities."
Amazon recently announced a $13.7 billion purchase of Whole Foods, sending shock waves across the grocery and retail sectors as fears of competition from the e-commerce giant swept the markets.
But Jefferies analyst Dan Binder suggests that Amazon's purchase of Whole Foods is a concession that physical storefronts are actually important.
"The Whole Foods acquisition as a tacit admission by Amazon that a brick and mortar retail foot print is important in retail," according to Jefferies. "Walmart's prices are currently more competitive and the company is planning for additional price investment in the coming years and is raising the quality of its private label offering."