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 face of global growth a competitor founded just down the road in the 800 lb. gorilla in QSR known as McDonald’s, not even with the onslaught of the better-for-you burger brands like Shake Shack and in spite of a comparable small geographic footprint In-N-Out Burger has built a cult-like following by maintaining a laser focus on its brand identity of keeping things simple, maniacally executed against that promise and providing a dash of secret menus. https://www.qsrmagazine.com/competition/secret-n-out-s-cult-following?utm_campaign=20170814&utm_medium=email&utm_source=jolt
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