América Retail | Homepage
Sunday, February 26, 2017

La primera comunidad del retail en Latinoamérica

USA: The case for why Amazon should buy Macy’s

USA: The case for why Amazon should buy Macy’s

Febrero 13, 2017

👤Periodista: María Alejandra Lopez Fuente: Busines Insider 🕔13.Feb 2017

 

Macy’s is reportedly in talks to sell itself to Saks owner Hudson’s Bay, but its best possible buyer may actually be the company that triggered the decline of its retail dominance: Amazon.

According to Cowen & Co. analyst Oliver Chen, a Macy’s-Amazon combination could be “revolutionary,” as it helps fill the needs of both companies.

In a note published Tuesday, Chen lays out his case for why a Macy’s acquisition would help Amazon.

Here are the reasons:

  1. Tremendous vendor/supplier scale:Macy’s would give Amazon access to a whole bunch of new apparel brands and help expand its first-party seller relationship.
  2. Speed: Amazon could take advantage of Macy’s vast number of physical stores and warehouses to improve delivery speed.
  3. Big data meets retail: Amazon has the “best” predictive analytics technology in retail, so it could help Macy’s make better decisions across inventory and pricing, and potentially lead to higher sales.
  4. Merging physical and digital retail: Amazon would gain foot traffic from loyal department store shoppers and get to utilize Macy’s physical presence to showcase products and have customers return products easily.

Read Also: Investors Bid Up Nordstrom After Ivanka Dumping

On top of that, Chen argues Amazon’s online traffic growth, supply chain expertise, younger customer base, and superior mobile technology could help save Macy’s. He writes:

“We believe this deal could address some of the major consumer pain points we have seen in our proprietary Cowen consumer studies as Amazon needs better brands, a more curated assortment, a physical place to return items, and customers could use help with ensuring fit – Macy’s would also give Amazon greater credibility in curation and fashion authority.”

Still, despite the potential benefits of a tie-up, Chen doesn’t believe any serious talks between Amazon and Macy’s will materialize in the near future, given the high costs of maintaining physical stores, and Macy’s already struggling business model.

Plus, as noted by another Cowen & Co analyst, John Blackledge, Amazon does not typically do large deals (Macy’s is worth ~$10 billion) and is more likely to start by testing and learning from smaller initiatives, like Amazon Go.

“Amazon will more likely continue to lead a charge to steal share from Macy’s rather than acquire Macy’s,” the note says.

Articulos relacionados

USA: Ivanka Trump’s brand: China can’t get enough

USA: Ivanka Trump’s brand: China can’t get enough

Febrero 24, 2017

  Dozens of Chinese businesses and individuals have submitted at least 65 applications to Beijing to

USA: Walgreens designates specialty pharmacies as cancer-specialized centers

USA: Walgreens designates specialty pharmacies as cancer-specialized centers

Febrero 24, 2017

  Walgreens on Wednesday designated more than 50 of its local specialty pharmacies as cancer-specialized locations.

USA: EBay brings reselling capabilities to “social organizer” app

USA: EBay brings reselling capabilities to “social organizer” app

Febrero 24, 2017

  eBay is looking to entice users of Snupps, an application that allows for cataloging and

USA: Gillette is cutting the price of its razors by up to 20%

USA: Gillette is cutting the price of its razors by up to 20%

Febrero 24, 2017

  Gillette is feeling the razor burn. In the face of increasingly stiff competition, Procter & Gamble

USA: Under Armour’s ‘soaring’ shoe sales reveal a terrible truth for the business

USA: Under Armour’s ‘soaring’ shoe sales reveal a terrible truth for the business

Febrero 24, 2017

  In order to achieve its ambitious goal of becoming a $10 billion company, Under Armour knows it will

Últimas Noticias

USA: Amazon has a bra plan
Febrero 13, 2017

Newsletter

SECTIONS

América Retail