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 into a divide between what was once loyal brick and mortar customers to becoming Amazon customers. The one drawback? No physical plant.
As much traffic as there is now going to the duopoly in Amazon and Walmarts band of merry brands (see: Jet, Modcloth, Bonobos..etc and now Flipkart) there is still that slim blade of light in the traditional brick & mortar stores in companies like Macy's, Target and yes Sears. So how does this recent deal with Amazon show that Sears is, potentially, stealing a play from Amazon's own playbook? By placing itself in-between the Amazon brand and its customers. Sears (and Kmart) still have a healthy amount of physical plant and while sure Amazon has bought Whole Foods that brand is a very narrow band of which Amazon can push its wares. Sears on the other hand? Well remember that catalog that used to have everything from clothes to home appliances? You're starting to get the picture. And with Sears now hawking it's branded products on Amazon one could see a future where Amazon even buys out Sears and replaces it with its own brand. All-in-all not too bad of a strategy for Lampert if it comes to fruition.
What do you think? Can Sears siphon of Amazon customers by getting them back into their stores? Will Amazon see Sears as a means to become an integrated retailer?
https://www.chainstoreage.com/technology/sears-in-new-partnership-with-amazon/
In the ever-evolving content vs. pipes vs. tech battle Disney has fired a shot heard ‘round the world by announcing that it will pull all of its content from Netflix. On one side I think, it’s about time! Disney obviously has finally seen the light that Netflix is stealing a page from Amazon’s early playbook by establishing a direct link to the end user by inserting itself between the seller and the buyer. The seller in the Amazon scenario were companies like Toys "R" Us, Borders Books and Target (to name a few) turned over management of their eCommerce platforms to Amazon. But not only did they turn it over management but the actual Consumer experience was Amazon! So Amazon, by default, was who consumers felt they were actually shopping from and we all know how that ended for Borders and many other brick & mortar stores. So rather than letting Netflix Amazon them Disney decides to launch a rival streaming service (kinda late to the game if you ask me. CBS launched one ba
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