Amazon will be the first company worth $1 trillion: L2 founder

PanARMENIAN.Net - America has too many retail stores and “the reckoning is here,” says L2 founder and New York University professor Scott Galloway — and Amazon stands to profit from the looming chaos, Recode said.

“The majority of retailers will face this triple threat of stagnant wages in the middle class, a transition away from typical retail goods to more experiences and Amazon/fast fashion,” Galloway said on the latest episode of Recode Decode, hosted by Kara Swisher. “And also the over-storing of America: We could lose a third of our retail space and probably not miss it.”

“The winners are consumers and Amazon shareholders,” he added. “But the losers are the retail ecosystem, which includes 11 million cashiers, which includes the 40 million households that have a share of Gap or Walmart. You’re effectively seeing this giant sucking sound out of the entire retail ecosystem into a small number of players.”

On the new podcast, Galloway predicted that Amazon could multiply what Prime households spend today, from $1,300 a year to $7,000 or more, and that it would beat Apple and Google to become the first company with a $1 trillion market cap. He also explained how that extreme concentration of wealth will affect everyone else.