Skip to main content

Posts

Is Eddie Lampert doing an Amazon to Amazon?

Back in the day Amazon used to sell books but it also had a strategic approach to broaden it's portfolio. That was to establish a seemingly non-hostile relationship with brick & mortar retailers like Toys 'R Us (see bankruptcy), Borders Books..etc. The goal? To get in front of the customer interaction. Amazon sold itself as an expert in the digital space and allowed for cost efficiencies (i.e: not having to build out a web-site or deal with the head-ache of how to fulfill product or the logistics on from where) from the brick and mortar company to focus on what it did best (selling in a physical store) while letting Amazon manage it's digital footprint which was a low volume mix relative to the traffic that was walking into the brick & mortar stores on a daily basis. But, as we all know now, by insinuating itself in the path to purchase and putting its brand in-between the customer and the brick & mortar brand Amazon was able to create a wedge that has grown
Recent posts

Alibaba Is Spending $2.9 Billion to Challenge Walmart in China

Is this the end of eCommerce and the revival of brick & mortar? With Alibaba’s $2.88 billion purchase of a stake in a top Walmart competitor in the Chinese market one would not be faulted for answering that question affirmatively but this is probably moreso that latest stage of the Imperial Army slowly mowing down the last of the Rebels. Sure companies like Amazon and eBay are never going to forsake their digital platforms but they have wrecked enough carnage in the brick & mortar world to now have a wide enough birth to start becoming omni-channel players. What does this mean for the surviving brick & mortar companies? Be afraid. Be very afraid. https://finance.yahoo.com/news/alibaba-spending-2-9-billion-111959145.html

The Grinch Can Steal Christmas

After quite literally handing a head start to Amazon and enabling it to become it’s default connection for Customer’s Toys ‘R Us finds itself the latest victim added to the ever-growing heap at the retail morgue (see: Borders, HH Gregg, Circuit City, RadioShack, Payless Shoes, Sports Authority etc). That and the massive debt load (more than $5 billion) that it took on as a result of (over) leveraged buy-out by PE firms KKR, Bain Capital, and Vornado Realty Trust certainly didn’t help. Toys ‘R US Chairman Dave Brandon said that today the company can operate free from financial constraints with the debt restructured under Chapter 11 and stores are supposed to stay open for the Christmas season where Toys ‘R Us earned 40% of its U.S. sales last year. He went on to say that this should also buy them time to invest in the business by improving the Customer experience (both in store and online). Part of that apparently will include closing underperforming stores whilst remaining locations

Kohl's Takes in Amazon's Trojan Horse

How many of us are looking at this dedicated space that Kohl’s is allowing Amazon in their stores to be a Trojan Horse? Orrrr is it at Kohl’s chief merchandising and customer officer said an against the grain tactic to provide a best-in-class ominichannel experience? Spoiler alert see how well Amazon “helped” other retailers like Borders and Toys ‘R Us to be innovative. https://www.bloomberg.com/news/articles/2017-09-06/kohl-s-teams-up-with-amazon-in-bid-to-drive-traffic-to-stores https://www.cnbc.com/2017/09/06/kohls-partners-with-amazon-to-sell-echo-devices-and-smart-home-items.html