Moody's: Amazon Still Not As Strong As Major Rivals

(RTTNews) - Amazon's retail rivals Wal-Mart and Costco are actually in a stronger position than the online retailer, according to Moody's.

Amazon's growth potential has garnered popular attention but brick-and-mortars are far from suffering, analysts Keith O'Shea writes.

"That potential is overshadowing the superior real-time operating performance of Amazon's key retail competitors," O'Shea wrote. "The emphasis on stock performance is, in our view, forcing brick-and-mortar competitors toward managing more irrationally for short-term performance just when they're confronting secular change."

"Online sales still account for only about 10% of overall U.S. retail sales, with a much lower percentage in the grocery segment, leaving the big brick-and-mortar retailers, led by Walmart, still really formidable competitors in the industry," he wrote.