Could 3D Printing Actually Take Down Major Retailers Like Wal-Mart?

The growth of 3D printing is starting to make Wal-Mart sweat - do other major retailers have anything to fear?

The potential for 3D printing to disrupt the model of major brick-and-mortar retailers, and online shops like Amazon (AMZN), has been detailed by many sources including Bloomberg and Quartz. 

It's not exactly news. The ability to customize parts, and what that could do to American inventors and manufacturers, has always been one of the most exciting prospects for 3D printers. 

Read more from Kapitall: 3D Printing: Investing Idea, Consumer Good or a Work of Art?

The reason why the issue is garnering new attention isn't so much that 3D printed parts have become more practical. They still require a huge amount of human labor - 3D parts need to be re-surfaced and customized by actual people - which probably means that it's still a little too early to be talking about America's manufacturing renaissance. 

But excitement about the industry is still pretty hard to shake off. Any 3D enthusiast worth his salt has seen this video of Leon McCarthy, the young boy who was born without fingers. His father, unable to afford an expensive factory-made prosthesis, finally discovered a way to print one. The materials cost about $10. 

3D printing theoretically will allow smaller shops to sell much more customizable goods. One of the reasons that American manufacturing declined in recent decades is that it was too difficult for low volume companies - ones that only produce a limited number of goods each year - to stay profitable. 

Which is how retailers like Wal-Mart (WMT) came to be. Because if you essentially sell pretty much everything, everywhere, you can afford 10,000 customized parts from China. The very foundation of Wal-Mart's profit model is about consolidating the supply line. 

But if all you need to make your product are raw materials and a printer - well, that profit model kind of goes out the window. In an effort to stay ahead, Wal-Mart has pledged to purchase and sell an additional $50 billion in American-made products this year.

Major stores probably face little danger for the time being. While 3D printing technology is is sophisticated enough to start day-dreaming, we're still a long way away from implementation. But a revival of American manufacturing... That's a nice dream to have. 

So how will major retailers respond to the growth of 3D printing? We've compiled a list of retail stocks that might be impacted, or if they play their cards right, could benefit from this exciting shift in manufacturing.

Click on the interactive chart below to view analyst ratings over time.

Will 3D printing threaten the profit model of any of these major retailers, or can they benefit? Use the list below to begin your own analysis. 

1. Wal-Mart Stores Inc. (WMT, Earnings, Analysts, Financials): Operates retail stores in various formats worldwide. Market cap at $253.49B, most recent closing price at $77.33.

 

2. Home Depot, Inc. (HD, Earnings, Analysts, Financials): Operates as a home improvement retailer. Market cap at $110.42B, most recent closing price at $77.0.

 

3. Amazon.com Inc. (AMZN, Earnings, Analysts, Financials): Operates as an online retailer in North America and internationally. Market cap at $163.94B, most recent closing price at $358.74.

 

4. Best Buy Co. Inc. (BBY, Earnings, Analysts, Financials): Operates as a retailer of consumer electronics, home office products, entertainment products, appliances, and related services. Market cap at $14.73B, most recent closing price at $43.28.

 

5. Bed Bath & Beyond Inc. (BBBY, Earnings, Analysts, Financials): Operates a chain of retail stores. Market cap at $16.33B, most recent closing price at $76.99.

 

6. Sears Holdings Corporation (SHLD, Earnings, Analysts, Financials): Operates as a retailer in the United States and Canada. Market cap at $6.46B, most recent closing price at $60.86.

 

(List compiled by James Dennin. Analyst ratings sourced from Zacks Investment Research, all other data sourced from Finviz. Original article published on 11/7/13.) 

Analyze These Ideas: Getting Started

Read descriptions for all companies mentioned Access a performance overview for all stocks in the list Compare analyst ratings for the companies mentioned Compare analyst ratings to annual returns for stocks mentioned Real-Time Opinion: Scan the latest tweets about these companies (feed will open in a new window)

Dig Deeper: Access Company Snapshots, Charts, Filings

Wal-Mart Stores Inc. (WMT, Chart, Download SEC Filings) Home Depot, Inc. (HD, Chart, Download SEC Filings) Amazon.com Inc. (AMZN, Chart, Download SEC Filings) Best Buy Co. Inc. (BBY, Chart, Download SEC Filings) Bed Bath & Beyond Inc. (BBBY, Chart, Download SEC Filings) Sears Holdings Corporation (SHLD, Chart, Download SEC Filings)

 

ABOUT US

© Kapitall, Inc. All rights reserved. Kapitall Wire is a division of Kapitall, Inc. Kapitall Generation, LLC is a wholly owned subsidiary of Kapitall, Inc.

Kapitall Wire offers free cutting edge investing ideas, intended for educational information purposes only. It should not be construed as an offer to buy or sell securities, or any other product or service provided by Kapitall Inc., and its affiliate companies.

Open a free account today get access to virtual cash portfolios, cutting-edge tools, stock market insights, and a live brokerage platform through our affiliated company, Kapitall Generation, LLC. 

Securities products and services are offered by Kapitall Generation, LLC - a FINRA/SIPC member. 

Articles