Amazon Rolls Out Department Stores

Amazon’s Brick-and-Mortar Retail Store Plans

Amazon (AMZN) is expanding into the physical retail world after spending years disrupting it. The nation’s biggest online retailer is gearing up to open bigger retail stores in several locations across the country in an effort to boost sales of clothing, household goods, and electronics.

Amazon’s move to open department-like stores is an about-face for the company. After all, Amazon has been blamed for the demise of many traditional retailers as it ate away at their market share over the years. Its cheap prices and quick shipping have also impacted mall operators, which have seen business slow and storefronts sit empty. This year, Amazon replaced Walmart (WMT) as the nation’s biggest retailer for the first time ever. In the 12 months ending in June, Amazon had $610 billion in sales, while Walmart had $566 billion.

Stores Coming to California and Ohio

Amazon is expected to open some of its new stores, which will be about 30,000 square feet, in California and Ohio. The locations will be much larger than its existing Amazon stores, but will be smaller than department stores, which typically have 100,000 square feet of showroom space. The stores will be similar in size to the new smaller retail locations which Nordstrom (JWN) and Bloomingdale’s (M) are launching.

Shoppers should expect Amazon’s private label brands to be displayed prominently in its stores. It is not clear what other brands Amazon plans to carry. Shoppers will have a variety of items to choose from including clothes, furniture, electronics, household products, toys, and other categories.

Amazon Gives Consumers Instant Gratification

By opening physical stores, Amazon will be able to provide customers with more items they can try on or interact with in person before making purchases. That should help sales of apparel and shoes in particular, as these items can be difficult for some consumers to purchase online. Customers will also get instant gratification from the new stores, instead of having to wait for products to arrive when shopping on Amazon.com.

Amazon is also hoping the stores will give customers new ways to engage with the ecommerce giant. The stores will also provide a venue to show off products shoppers may not find online.

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Pfizer and Moderna Prepare to Deliver Third COVID-19 Shot

White House Urges a COVID-19 Booster

Pfizer (PFE) and Moderna (MRNA) are poised to earn billions of dollars in revenue now that a third booster shot for COVID-19 is being recommended. That is prompting Wall Street to raise its sales estimates for the two drug companies, adding billions of dollars to their sales forecasts through 2022.

For Pfizer and COVID-19 vaccine partner BioNTech (BNTX), sales estimates by some Wall Street firms have increased by double digits. The same is true of Moderna. Some Wall Street firms have raised their sales estimates by 25% for the company. The new forecasts come as the Biden administration is calling for all vaccinated adults in the US to get a third booster shot eight months after their last Pfizer or Moderna vaccine.

Pfizer and Moderna Ramp Up Production

While Wall Street is just starting to revise its sales forecasts, Pfizer and Moderna have been preparing to roll out COVID-19 vaccine boosters for some time. The companies have already increased their production levels, which means there will be enough supply for a third dose. In July Pfizer increased its sales target for COVID-19 vaccines by 30%.

Meanwhile Moderna, which did not have a product on the market prior to the pandemic, expects to generate $20 billion in sales from the agreements it inked for 2021. That does not include a third shot or orders for 2022. In the first six months of this year it had $6.3 billion in sales compared to $75 million a year ago.

Pfizer and Moderna Raise Vaccine Prices

Pfizer and Moderna are charging higher prices for this round of shots.

The US government inked a deal with Pfizer and BioNTech in July to purchase 200 million doses at $24 per dose. That is higher than the $19.50 the US government previously paid. Moderna is charging the government $15 for the first 100 million doses and $16.50 per dose for the following 400 million shots.

Prices the companies charge in the European Union and elsewhere also increased. Both drugmakers said prices vary based on the country’s ability to pay. While not everyone may agree with Pfizer and Moderna’s vaccine pricing, one thing is for sure: sales are booming for the two companies and that trend is not likely to slow for some time.

Friday Funding: Bitpanda, Nuvemshop, DistroKid

Digital Investment Platform Raises $263 Million

Bitpanda, a digital investment platform which started out with crypto trading but has expanded into free stock trading, raised $263 million in venture funding. The Series C round was led by Valar Ventures and included participation from REDO Ventures, LeadBlock Partners, and Jump Capital. The fundraising round gives Bitpanda a valuation of $4.1 billion. The new valuation is striking given Bitpanda just achieved unicorn status in March.

While there are many digital-investment platforms, what makes Bitpanda stand out is its focus on the European markets. In addition to enabling users to buy stocks commission-free, it also lets them buy precious metals without any charges. Proceeds from the funding round will be used to expand and increase its workforce, which now stands at more than 500 people.

Brazilian Ecommerce Platform Operator Now Valued at $3.04 Billion

Nuvemshop, a Brazilian ecommerce operator, raised $500 million in venture funding, giving it a valuation of $3.04 billion. Insight Partners and Tiger Global led the round. Investor interest in the ecommerce platform has been rising as online sales in Latin America surge. Some forecasts call for the online retail market to grow by four times its current size in the coming years.

Nuvemshop operates a network of around 90,000 merchants located in Brazil, Mexico, and Argentina. Unlike Amazon (AMZN), Nuvemshop lets merchants on its platform select delivery and payment partners. It plans to expand into Colombia, Chile, and Peru with some of the proceeds from the latest fundraising round.

Music Distributor Reaches Unicorn Status With Funding Round

DistroKid, a music distributor startup, has raised venture funding from Insight Partners, pushing the startup into unicorn status. While DistroKid did not disclose how much it raised from Insight Partners, it did say it is valued at $1.3 billion as a result. With the new capital, DistroKid becomes one of the most valued music distributors in the world. It is also a leader in enabling DIY artists to release their songs.

Customers pay $19.99 per year to access tools including distribution across music-streaming services. Everyone pays the rate regardless of how much money they make from their music.

DistroKid’s platform is used by millions of artists annually, with 15,000 to 25,000 songs uploaded daily. The startup plans to use the venture funding to build more tools for the artists on its platform.