Jeff Bezos is an unlikely personal finance guru

Jeff Bezos is an unlikely personal finance guru

NEW YORK, Nov 15 (Reuters Breakingviews) – Jeff Bezos, the person who sells every little thing, is telling consumers to cease shopping for every little thing. The (AMZN.O) founder warned customers in an interview with CNN to place the brakes on giant costly purchases like TVs and automobiles and avoid wasting “dry powder” for a chronic financial hunch. It could appear odd that Bezos, who constructed a $1 trillion firm on ease and comfort, is doling out monetary recommendation that cuts towards his enterprise pursuits. After all, the upcoming vacation season is an important for retailers, making up 30% or extra of income at corporations like Target (TGT.N) and Macy’s (M.N).

Bezos’ recommendation could be much less self-defeating than it sounds. Amazon’s sport isn’t essentially getting customers to spend extra of what they earn, however getting them to spend extra of it with Amazon. E-commerce is solely 14.5% of total retail gross sales of some $1.8 trillion, in accordance with the U.S. Census Bureau. Meanwhile pure-play e-commerce corporations that don’t have their roots in real-world shops represented 8% of retail gross sales within the second quarter in comparison with 5.7% within the second quarter in 2019, reckons UBS. In quick, Amazon can develop even when retail doesn’t, which means Bezos the billionaire can afford to be the unlikely voice of parsimony. (By Jennifer Saba)

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(The creator is a Reuters Breakingviews columnist. The opinions expressed are their very own.)

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Editing by John Foley and Sharon Lam

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