The rumors of brick and mortar retail's demise are greatly exaggerated. There are some physical retailers that are thriving in the age of Amazon (NASDAQ: AMZN).
The following companies prove that not only is competition with Amazon possible, it can be very profitable. Nine retailers that are growing in the face of Amazon are:
1. Costco Wholesale (NASDAQ: COST). The club store's revenues increased by $880 million during the third quarter of 2016, growing from $118.72 billion in August to $119.60 in November. Costco's revenues have been increasing by around $800 million a quarter for past four years.
2. Kroger (NYSE: KR). The grocery giant's revenues are growing even faster than Costco's. Kroger added $1.48 billion in revenue during third quarter 2016, its revenues rose from $112.41 billion in July to $113.41 billion in October. Kroger's massive footprint is also growing it has acquired two major regional grocers; Roundy's and Harris Teeter, in the past few years and expanded its ecosystem to 2,781 supermarkets and 785 convenience stores.
3. Dollar General (NYSE: DG). This small-box discounter added 900 stores in 2016 and plans to open another 1,000 next year. The dollar store operator's revenues rose by $150 million during third quarter 2016 and reached $21.26 billion in October 2016.
4. Dollar Tree (NASDAQ: DLTR). Another dollar-store success story this company recently absorbed its rival Family Dollar. Dollar Tree's revenues grew by $5 billion during the first three quarters of 2016. It now operates 13,600 stores in North America.
5. Walgreens Boots Alliance (NASDAQ: WBA). This giant currently operates 12,755 drugstores in nine countries and plans to buy another competitor Rite Aid (NYSE: RAD); which operates another 4,553. Walgreens reported revenues of $117.35 billion on August 31, 2016, that number does not include Rite Aid's revenues of $32.64 billion.
6. Lowe's (NYSE: LOW). The home improvement chain's revenues have grown by $7.13 billion over the past two years. Rising from $55.43 billion in October 2014 to $62.47 billion in October 2016. Lowe's now operates 1,840 stores in the United States and Canada, and recently acquired the Canadian chain Rona.
7. Home Depot (NYSE: HD). The home-improvement business appears to be Amazon proof, Lowe's biggest competitor saw its revenues increase by $11.66 billion over the past two years. Home Depot reported revenues of $81.71 billion in October 2014 that grew to $93.37 billion in October 2016.
8. Aldi the no-frills German grocer now operates 1,600 stores in the United States. It recently expanded into Southern California. Some retail analysts even believe the privately owned Aldi is a threat to major retail players like Walmart (NYSE: WMT) and Kroger.
9. H&M. The hip Swedish clothing emporium opened its 4,000th location in October, Fashionista reported. If that wasn't enough, H&M plans to grow by 10% by opening 425 new stores worldwide next year. Fashionista estimates that H&M's store count has doubled since 2010. The company is also looking to expand into 12 new countries including Canada and Japan next year. The company can afford the expansion because H&M reported a 52% profit in its last earnings report.
Despite the popularity of Amazon, brick and mortar retail is still a growing business. Many chains are thriving in the age of online retail - even in the face of Amazon's relentless growth.
Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.