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Yahoo
30-06-2025
- Business
- Yahoo
What the $1 trillion rural wallet means for Walmart, Amazon
The $1 trillion battle for America's back roads is heating up, with Amazon (AMZN) and Walmart (WMT) at the forefront. The two retail giants are aggressively expanding their e-commerce and delivery capabilities across rural communities, hoping to unlock a largely underserved slice of consumer spending. "Rural consumers spend more than you think," Morgan Stanley analysts said in a new report. The firm notes that the US rural market represents a $1 trillion opportunity in personal goods consumption, with rural households spending roughly 95% of what urban consumers do. Nearly 45 million Americans live in rural counties. According to the Bureau of Labor Statistics' 2023 Consumer Expenditure Survey, excluding autos and gas, rural consumers account for around one-fifth of US personal goods consumption. "Rural consumers have been on the sidelines, waiting days or even weeks for basic goods that urban shoppers get in hours," said Jerry Sheldon, vice president of research and advisory firm IHL Group. "That's about to change." Walmart's stock is up 44% in the past year and 8% year to date as it gained further traction with inflation-weary shoppers across the income spectrum. Amazon stock has jumped 13% over the past year, but only 1% in 2025. "What makes the rural push so crucial right now is that both Amazon and Walmart are ramping up investment at the same time, more aggressively than ever before," Morgan Stanley's Simeon Gutman said in an email. "They've each been citing rural expansion repeatedly on recent earnings calls. That's the signal that really matters." Both companies are trading far above the S&P 500's (^GSPC) average price-to-earnings ratio, which requires them to continue to perform financially to keep investors' interest. Walmart has a head start in the rural market with its vast store network, affordable inventory, and grocery dominance, Morgan Stanley said. Its same-day delivery now covers 93% of the US population, up from 76% two years ago, and is expected to reach 95% by the end of 2025. Amazon, meanwhile, is betting that its speed, logistics know-how, and ability to innovate will close that gap. It's investing $4 billion through 2026 to beef up its rural delivery footprint to reach 4,000 rural US locations. "Companies are always chasing growth, and this is clearly a major opportunity. While delivery costs are higher at first, as average order increases, those economics start to improve,' Sheldon added. Read more: Is the stock market open on July Fourth? The companies' rise poses a serious challenge to other big box and value retailers, such as Target (TGT), Kroger (KR), Dollar Tree (DLTR), and Albertsons (ACI), according to Morgan Stanley. Retailers with deep rural footprints of their own, like Dollar General (DG) and Tractor Supply (TSCO), also face new pressure. Amazon's expansion into small-town ZIP codes could siphon off value-conscious rural shoppers, who now expect faster, more reliable delivery options. Parcel carriers like FedEx (FDX) and UPS (UPS) could find themselves in the crosshairs. Amazon's move to vertically integrate its delivery network, especially in rural zones where FedEx has historically been stronger, could erode the parcel incumbents' share of residential shipping. Morgan Stanley estimates Amazon and Walmart collectively hold about 20% of the current rural retail market, with Walmart owning the lion's share today thanks to its 3,560 Supercenters, many of which could double as local fulfillment hubs. Roughly 60% of Walmart's US delivery orders are now fulfilled from those hubs, a major efficiency advantage over competitors. KeyBanc analyst Bradley Thomas told Yahoo Finance that Walmart's progress in logistics is a major tailwind for growth and margin expansion. "It's taken 10 years for Walmart to reach this scale," he said. The company is attracting higher-income shoppers as delivery becomes part of its value proposition, much like Amazon Prime. Amazon, on the other hand, still boasts an edge in its breadth of selection and cost-effective delivery of everyday items. In the first quarter, its retail business sales rose 9% year over year to $155.7 billion while operating margin climbed from 10.7% the previous year to 11.8%. Walmart has also delivered a string of earnings beats. For its latest quarter, revenue climbed 2.5% year over year to $165.6 billion. Global e-commerce sales jumped 22%, and operating margins saw a modest improvement. Investors are also watching closely for potential disruption in the grocery and discount segments, where shifts in market share can happen quickly. While the broader market remains stable, interest rates, tariffs, and geopolitical uncertainty remain key wildcards for retail. Francisco Velasquez is an Associate Reporter at Yahoo Finance. You can reach him via LinkedIn and X. Click here for all of the latest retail stock news and events to better inform your investing strategy Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
30-06-2025
- Business
- Yahoo
What the $1 trillion rural wallet means for Walmart, Amazon
The $1 trillion battle for America's back roads is heating up, with Amazon (AMZN) and Walmart (WMT) at the forefront. The two retail giants are aggressively expanding their e-commerce and delivery capabilities across rural communities, hoping to unlock a largely underserved slice of consumer spending. "Rural consumers spend more than you think," Morgan Stanley analysts said in a new report. The firm notes that the US rural market represents a $1 trillion opportunity in personal goods consumption, with rural households spending roughly 95% of what urban consumers do. Nearly 45 million Americans live in rural counties. According to the Bureau of Labor Statistics' 2023 Consumer Expenditure Survey, excluding autos and gas, rural consumers account for around one-fifth of US personal goods consumption. "Rural consumers have been on the sidelines, waiting days or even weeks for basic goods that urban shoppers get in hours," said Jerry Sheldon, vice president of research and advisory firm IHL Group. "That's about to change." Walmart's stock is up 44% in the past year and 8% year to date as it gained further traction with inflation-weary shoppers across the income spectrum. Amazon stock has jumped 13% over the past year, but only 1% in 2025. "What makes the rural push so crucial right now is that both Amazon and Walmart are ramping up investment at the same time, more aggressively than ever before," Morgan Stanley's Simeon Gutman said in an email. "They've each been citing rural expansion repeatedly on recent earnings calls. That's the signal that really matters." Both companies are trading far above the S&P 500's (^GSPC) average price-to-earnings ratio, which requires them to continue to perform financially to keep investors' interest. Walmart has a head start in the rural market with its vast store network, affordable inventory, and grocery dominance, Morgan Stanley said. Its same-day delivery now covers 93% of the US population, up from 76% two years ago, and is expected to reach 95% by the end of 2025. Amazon, meanwhile, is betting that its speed, logistics know-how, and ability to innovate will close that gap. It's investing $4 billion through 2026 to beef up its rural delivery footprint to reach 4,000 rural US locations. "Companies are always chasing growth, and this is clearly a major opportunity. While delivery costs are higher at first, as average order increases, those economics start to improve,' Sheldon added. Read more: Is the stock market open on July Fourth? The companies' rise poses a serious challenge to other big box and value retailers, such as Target (TGT), Kroger (KR), Dollar Tree (DLTR), and Albertsons (ACI), according to Morgan Stanley. Retailers with deep rural footprints of their own, like Dollar General (DG) and Tractor Supply (TSCO), also face new pressure. Amazon's expansion into small-town ZIP codes could siphon off value-conscious rural shoppers, who now expect faster, more reliable delivery options. Parcel carriers like FedEx (FDX) and UPS (UPS) could find themselves in the crosshairs. Amazon's move to vertically integrate its delivery network, especially in rural zones where FedEx has historically been stronger, could erode the parcel incumbents' share of residential shipping. Morgan Stanley estimates Amazon and Walmart collectively hold about 20% of the current rural retail market, with Walmart owning the lion's share today thanks to its 3,560 Supercenters, many of which could double as local fulfillment hubs. Roughly 60% of Walmart's US delivery orders are now fulfilled from those hubs, a major efficiency advantage over competitors. KeyBanc analyst Bradley Thomas told Yahoo Finance that Walmart's progress in logistics is a major tailwind for growth and margin expansion. "It's taken 10 years for Walmart to reach this scale," he said. The company is attracting higher-income shoppers as delivery becomes part of its value proposition, much like Amazon Prime. Amazon, on the other hand, still boasts an edge in its breadth of selection and cost-effective delivery of everyday items. In the first quarter, its retail business sales rose 9% year over year to $155.7 billion while operating margin climbed from 10.7% the previous year to 11.8%. Walmart has also delivered a string of earnings beats. For its latest quarter, revenue climbed 2.5% year over year to $165.6 billion. Global e-commerce sales jumped 22%, and operating margins saw a modest improvement. Investors are also watching closely for potential disruption in the grocery and discount segments, where shifts in market share can happen quickly. While the broader market remains stable, interest rates, tariffs, and geopolitical uncertainty remain key wildcards for retail. Francisco Velasquez is an Associate Reporter at Yahoo Finance. You can reach him via LinkedIn and X. Click here for all of the latest retail stock news and events to better inform your investing strategy
Yahoo
25-04-2025
- Business
- Yahoo
How Long $1.5 Million Will Last in Every State If Social Security Runs Out
It's no secret that America's Social Security system is struggling with a number of issues and that it may even be wholly insolvent by 2034. Were that to be the case, American retirees would be forced to retire solely on their lifetime savings to financially survive in their golden years. Check Out: Learn More: Would you be able to do that? Could you do that in a state less expensive than you live in now? Would you be able to save, say, $1.5 million by the time you retire and live off it? It's a question GOBankingRates has analyzed, gathering statistics from both the Social Security Administration's January 2025 information as well as the Bureau of Labor Statistics' 2023 Consumer Expenditure Survey. With that information, GOBankingRates then assessed the average annual expenditures for every state in America and held that against $1.5 million worth of retirement savings. While the national average is $1.5 million lasting 25 years, some states burn through that amount far faster and others last far beyond 25 years. Could your state's cost of living sustain a retirement on $1.5 million? Keep reading to find out. Also see the same question at $2 million. Annual expenditures: $53,357 Years $1.5 million will last: 28.1 National average: 25 years Trending Now: Also See: Annual expenditures: $74,147 Years $1.5 million will last: 20.2 National average: 25 years Find More: Annual expenditures: $67,778 Years $1.5 million will last: 22.1 National average: 25 years Annual expenditures: $53,447 Years $1.5 million will last: 28.1 National average: 25 years Annual expenditures: $86,946 Years $1.5 million will last: 17.3 National average: 25 years Annual expenditures: $61,709 Years $1.5 million will last: 24.3 National average: 25 years Annual expenditures: $67,117 Years $1.5 million will last: 22.4 National average: 25 years For You: Annual expenditures: $60,207 Years $1.5 million will last: 24.9 National average: 25 years Annual expenditures: $61,529 Years $1.5 million will last: 24.4 National average: 25 years Annual expenditures: $54,980 Years $1.5 million will last: 27.3 National average: 25 years Annual expenditures: $110,921 Years $1.5 million will last: 13.5 National average: 25 years Annual expenditures: $61,289 Years $1.5 million will last: 24.5 National average: 25 years Explore Next: Annual expenditures: $57,383 Years $1.5 million will last: 26.1 National average: 25 years Annual expenditures: $54,859 Years $1.5 million will last: 27.3 National average: 25 years Annual expenditures: $54,319 Years $1.5 million will last: 27.6 National average: 25 years Annual expenditures: $52,095 Years $1.5 million will last: 28.8 National average: 25 years Annual expenditures: $55,821 Years $1.5 million will last: 26.9 National average: 25 years Read Next: Annual expenditures: $56,181 Years $1.5 million will last: 26.7 National average: 25 years Annual expenditures: $68,199 Years $1.5 million will last: 22 National average: 25 years Annual expenditures: $59,426 Years $1.5 million will last: 25.2 National average: 25 years Annual expenditures: $88,268 Years $1.5 million will last: 17 National average: 25 years Annual expenditures: $55,460 Years $1.5 million will last: 27.1 National average: 25 years Read More: Annual expenditures: $57,263 Years $1.5 million will last: 26.2 National average: 25 years See More: Annual expenditures: $52,576 Years $1.5 million will last: 28.5 National average: 25 years Annual expenditures: $53,477 Years $1.5 million will last: 28.1 National average: 25 years Annual expenditures: $56,482 Years $1.5 million will last: 26.6 National average: 25 years Annual expenditures: $55,761 Years $1.5 million will last: 26.9 National average: 25 years Annual expenditures: $60,147 Years $1.5 million will last: 24.9 National average: 25 years Find Out: Annual expenditures: $66,997 Years $1.5 million will last: 22.4 National average: 25 years Annual expenditures: $68,980 Years $1.5 million will last: 21.8 National average: 25 years Annual expenditures: $55,821 Years $1.5 million will last: 26.9 National average: 25 years Annual expenditures: $74,147 Years $1.5 million will last: 20.2 National average: 25 years Annual expenditures: $58,645 Years $1.5 million will last: 25.6 National average: 25 years Explore More: Annual expenditures: $55,340 Years $1.5 million will last: 27.1 National average: 25 years Annual expenditures: $57,023 Years $1.5 million will last: 26.3 National average: 25 years Annual expenditures: $52,816 Years $1.5 million will last: 28.4 National average: 25 years Annual expenditures: $66,096 Years $1.5 million will last: 22.7 National average: 25 years Annual expenditures: $57,023 Years $1.5 million will last: 26.3 National average: 25 years Discover More: Annual expenditures: $67,538 Years $1.5 million will last: 22.2 National average: 25 years Annual expenditures: $57,203 Years $1.5 million will last: 26.2 National average: 25 years Annual expenditures: $55,460 Years $1.5 million will last: 27.1 National average: 25 years Annual expenditures: $54,078 Years $1.5 million will last: 27.7 National average: 25 years Annual expenditures: $55,641 Years $1.5 million will last: 27 National average: 25 years Check Out: Annual expenditures: $65,795 Years $1.5 million will last: $22.8 National average: 25 years Annual expenditures: $68,559 Years $1.5 million will last: 21.9 National average: 25 years Annual expenditures: $60,387 Years $1.5 million will last: 24.8 National average: 25 years Annual expenditures: $68,259 Years $1.5 million will last: 22 National average: 25 years Annual expenditures: $50,954 Years $1.5 million will last: 29.4 National average: 25 years See More: Annual expenditures: $59,666 Years $1.5 million will last: 25.1 National average: 25 years Annual expenditures: $57,232 Years $1.5 million will last: 26.2 National average: 25 years Methodology: GOBankingRates found the national average annual expenditures for people 65 and older, sourced from the Bureau of Labor Statistics' 2023 Consumer Expenditure Survey data. Then, GOBankingRates created (2) state-level annual expenditure estimates by multiplying the national figure by each state's overall cost-of-living index score for 2024 from the Missouri Economic Research and Information Center. Finally, GOBankingRates found (3) how many years $1,500,000 will last in each state by dividing $1,500,000 by each state's average annual expenditures estimate and its annual expenditures estimate minus yearly Social Security income. All data was collected on and is up to date as of March 7, 2025. More From GOBankingRates 6 Used Luxury SUVs That Are a Good Investment for Retirees 7 Tax Loopholes the Rich Use To Pay Less and Build More Wealth 7 Overpriced Grocery Items Frugal People Should Quit Buying in 2025 4 Affordable Car Brands You Won't Regret Buying in 2025 This article originally appeared on How Long $1.5 Million Will Last in Every State If Social Security Runs Out Sign in to access your portfolio
Yahoo
05-04-2025
- Business
- Yahoo
Final Four Retirement Destinations: The Cost of Living for Retirees in Florida, North Carolina, Texas and Alabama
If you're a sports fan, you likely know that Duke, Houston, Florida and Auburn are in the Final Four. And if you're nearing retirement age, you may be curious about how the states involved may look as living options when it's time to leave regular work behind and settle down. Check Out: Read Next: That's why GOBankingRates did some homework for you, looking at the cost of living for retirees in Florida, North Carolina, Texas and Alabama. Also see the cost to retire comfortably for 30 years in every state. Cost-of-living index: 102.4 Annual cost of living: $61,529 It's no surprise that Florida is a popular retirement destination. After all, there's lots of nice weather and plenty of things to do to stay busy. Another advantage of moving to Florida as a retiree is that it's one of the most tax-friendly states, as noted by Kiplinger. No state income tax is also good news for lots of retirees. Find Out: Cost-of-living index: 97.6 Annual cost of living: $58,645 North Carolina is a bit cheaper for retirees than Florida. The annual cost of living here is just above $58,000, compared with nearly $62,000 for Florida. According to Retire NC, some of the reasons to retire in North Carolina include affordability and a nice climate. Plus, the state increased spending to support older adults. Cost-of-living index: 92.6 Annual cost of living: $55,640 Per Insight Wealth Strategies, there are many financial reasons to enjoy the retiree life in Texas. First, there's no state income tax in Texas. Second, it's generally affordable to live in the state. The overall cost of living and housing costs are both lower than the national average. Cost-of-living index: 88.8 Annual cost of living: $53,357 Out of the Final Four retirement destinations, Alabama looks to be the most affordable. While it's not necessarily a lot less expensive than some of the other states, it still has the lowest annual cost of living among the Final Four. Further, Alabama has some tax breaks and good weather for retirees to enjoy. Methodology: In order to find out exactly how much you need to retire in your state, GOBankingRates found the annual cost of expenditures for a retired person in each state by multiplying the 65 year and older expenditures from the Bureau of Labor Statistics' 2023 Consumer Expenditure Survey by the cost of living index for each state from the Missouri Economic Research and Information Center's 2024 third quarter cost of living series. To find how much money a retired person would need to save, we divided each state's annual expenditures, minus the annual Social Security income as sourced from the Social Security Administration's Monthly Statistical Snapshot, November 2024, by .04, assuming drawing down savings by 4% each year to pay for living expenses. All data was collected and is up to date as of Jan. 2, 2025. More From GOBankingRates 6 Used Luxury SUVs That Are a Good Investment for RetireesI'm Retired and Regret Moving to Arizona -- Here's Why How Much Money Is Needed To Be Considered Middle Class in Every State? This article originally appeared on Final Four Retirement Destinations: The Cost of Living for Retirees in Florida, North Carolina, Texas and Alabama Sign in to access your portfolio
Yahoo
01-04-2025
- Business
- Yahoo
7 Best Arizona Cities To Retire on $3,000 Per Month
Many seniors decide to spend their retirement in Arizona because the state doesn't tax Social Security income and it benefits from warm weather year round. Best of all, there are several cities in Arizona where a monthly budget of $3,100 or less is enough money to fund a comfortable lifestyle. Be Aware: Check Out: To find the top Arizona cities to retire on a budget of $3,100 or less monthly, GOBankingRates sourced Zillow data to find every Arizona city with a monthly rent of $2,000 or less. The Bureau of Labor Statistics' 2023 Consumer Expenditure Survey was referred to for monthly grocery, healthcare and utility costs for people aged 65 and older. All eligible cities were required to have a livability score of 70 or higher, which was sourced from AreaVibes. Then the monthly costs were added to determine the top Arizona cities for retirement on a budget. From most to least expensive in descending order, here are the seven best Arizona cities for your retirement. Average rent (January 2025): $1,702 Livability: 72 Average monthly grocery cost: $401 Average monthly healthcare cost: $619 Average monthly utilities cost: $372 Average monthly expenditures cost: $3,094 That's Interesting: See More: Average rent (January 2025): $1,666 Livability: 78 Average monthly grocery cost: $407 Average monthly healthcare cost: $619 Average monthly utilities cost: $363 Average monthly expenditures cost: $3,055 Find Out: Average rent (January 2025): $1,650 Livability: 76 Average monthly grocery cost: $401 Average monthly healthcare cost: $619 Average monthly utilities cost: $366 Average monthly expenditures cost: $3,036 Average rent (January 2025): $1,619 Livability: 76 Average monthly grocery cost: $403 Average monthly healthcare cost: $619 Average monthly utilities cost: $365 Average monthly expenditures cost: $3,006 Average rent (January 2025): $1,608 Livability: 81 Average monthly grocery cost: $403 Average monthly healthcare cost: $619 Average monthly utilities cost: $359 Average monthly expenditures cost: $2,988 Explore Next: Average rent (January 2025): $1,437 Livability: 78 Average monthly grocery cost: $392 Average monthly healthcare cost: $710 Average monthly utilities cost: $367 Average monthly expenditures cost: $2,905 Average rent (January 2025): $1,497 Livability: 73 Average monthly grocery cost: $396 Average monthly healthcare cost: $571 Average monthly utilities cost: $357 Average monthly expenditures cost: $2,821 Methodology: For this study, GOBankingRates used Zillow January 2025 data to find every city in Arizona that has (1) January 2025 monthly rent of $2,000 or less. GOBankingRates then used Sperling's BestPlaces to find the cost of living index for every city on the list, looking at (2) grocery, (3) healthcare and (4) utilities index scores. Next, GOBankingRates used data from the Bureau of Labor Statistics' 2023 Consumer Expenditure Survey to find the annual expenditure amount for grocery ('food at home'), healthcare, and utilities ('Utilities, fuels, and public services') costs for people aged 65 and older. GOBankingRates then added monthly housing, grocery, healthcare and utilities costs together to find where a person 65 and older could survive on $3,000 or less. In order for a city to be qualified for the study, it had to have a livability score of 70 or higher, as sourced from AreaVibes, and be one of the 2,000 largest housing markets, according to Zillow. All data was collected on and is up to date as of March 10, 2025. More From GOBankingRates 5 Types of Vehicles Retirees Should Stay Away From Buying The New Retirement Problem Boomers Are Facing 4 Things You Should Do if You Want To Retire Early 8 Common Mistakes Retirees Make With Their Social Security Checks This article originally appeared on 7 Best Arizona Cities To Retire on $3,000 Per Month
