Amazon’s volatile profits have become a fact of retail life – and this quarter was no exception, with profits crashing.

But how much does its bottom line really matter?

The answer to that question depends on whether you’re talking about Jeff Bezos or everyone else. Here, Neil Saunders explains why its rocky bottom line hurts you more than it hurts Jeff Bezos.

It’s been a busy week for Amazon UK, which unveiled its new 600,000 sq ft headquarters in Shoreditch. The “magical” new space will house a research and development workforce of nearly 1,000.

Elsewhere today, Matches owners Tom and Ruth Chapman are rumoured to be seeking their payday and it’s bad news for the consumer outlook as confidence sinks back to post-Brexit lows and spending power is down across Britain.

Quote of the day

“All bets must now be on a further drift downwards. Yes, employment is booming, but wages have fallen in real terms since 2008 once inflation is taken into account.”

– GfK head of market dynamics Joe Staton on spiralling consumer confidence

Today in numbers

£198

The average UK household’s weekly discretionary income in June.

77%

The drop in Amazon’s second quarter profits.

Agenda

Happy trading over the weekend!

Becky Waller-Davies, reporter

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