Retail in Asia


Amazon goes shopping

Amazon Quickly eating the retail sales CNBC - Retail in Asia

All sorts of rumors are out there talking up potential Amazon acquisitions.

First, it was Kohl’s that was going to be bought by Amazon. It seemed reasonable; after all, they are already selling some of the Amazon electronic equipment like Alexa. Kohl’s also agreed to take back Amazon merchandise from customers.

SEE ALSO : Amazon : AR will change how we shop

It was a good idea for Amazon to initiate brick and mortar returns. At the same time, Kohl’s is counting on gaining more customer traffic

Then, technology analyst Gene Munster of Loup Ventures wrote that Target was a candidate to be purchased by Amazon. The locations of Target stores are appealing and would provide a great opportunity for the sales of Amazon hardware. Moreover, the fashion appeal of Target’s 1,834 stores makes this an interesting candidate.

As long as we are guessing who the next candidate might be, Walmart could be a great candidate. It has stores in every state of the U.S.A., a significant global presence, and is a fierce competitor to Amazon. All the more since Mark Lore has intensified online sales, so eliminating competition could enrich Jeff Bezos’s coffers. However, Walmart has 11,650 stores worldwide.

Here is another option. Forbes contributor and Columbia University Professor Mark Cohen’s belief that Costco could be the most likely candidate has merit since I believe both the food and non-food sections of Costco continue to function well and generate higher revenues and earnings every quarter.

Many Costco customers stay loyal to the company because of the quality of Costco’s offerings and value of every product they sell. And, membership renewals are very high. This acquisition would also strengthen Amazon’s presence in the food business. Amazon’s 2017 acquisition of Whole Foods Markets was a spectacular move.

Amazon is an amazing company – hated by the industry but loved by its customers. Their next acquisition is most likely going to be a ready-to-wear retailer that will intensify its fashion presentation. Kohl’s fits that description. Maybe J.C. Penney, but that company has too much debt. So what about Macy’s? Dillard’s?

SEE ALSO : What you need to know about Amazon’s Digital Day

The industry is fighting for survival. Amazon recognizes the opportunities and may act. However, this is still just a guessing game. Amazon will choose if and when to act when it’s ready, so we can just wait and watch as none of this is going to accelerate what Amazon will do.

(Source: Forbes)