4 Reasons Amazon Should Acquire Sears
REUTERS/Andy Clark
But if Amazon acquired Sears, both retailers could stand to benefit, industry expert Robin Lewis writes on his blog.
He names a few reasons why Amazon acquiring Sears would be a smart business move.
1. It would gain Sears Holdings' 2,400 Sears and K-Mart retail locations. "The acquisition becomes Bezos' answer to omnichannel and the proven revenue synergy of consumers' ability to shop online and off; the convenience of proximity for pick up and returns; and facilitation of even greater delivery speed," Lewis writes.
2. Amazon could get an incredible bargain. The cost of buying Sears would be less than building the same number of distribution centers, Lewis writes.
3. Sears still has attractive brands. If Amazon acquired Sears, it would get some great brand names. "Kenmore appliances, Craftsman tools, and DieHard batteries are iconic brands that can be resurrected," Lewis writes.
4. Sears has an e-commerce presence. Sears Chairman Eddie Lampert has built a considerable e-commerce presence for Sears. The online business would thrive even more with Amazon's capabilities.
Lewis also suggests that Amazon should get rid of the Sears and K-Mart brand names.
"The Amazon brand name is simply more powerful today, and I suggest even more so among the younger generation, well on its way to becoming the largest consumer segment," Lewis writes.
He says that while many American consumers might be sad to see the brands go, an acquisition by Amazon could be the best option.
"If Sears and K-Mart aren't discarded in this kind of a deal, at some point in the very near future, they will end up in the trash bin of history," he writes.
Disclosure: Jeff Bezos is an investor in Business Insider through his personal investment company Bezos Expeditions.
- US buys 81 Soviet-era combat aircraft from Russia's ally costing on average less than $20,000 each, report says
- 2 states where home prices are falling because there are too many houses and not enough buyers
- A couple accidentally shipped their cat in an Amazon return package. It arrived safely 6 days later, hundreds of miles away.
- ICICI Bank shares climb nearly 5% after Q4 earnings; mcap soars by ₹36,555.4 crore
- Markets rebound sharply on buying in bank stocks firm global trends
- Bengaluru's rental income highest in Q1-2024, Mumbai next: Anarock report
- Rupee falls 10 paise to settle at 83.48 against US dollar
- Include 4 hrs of physical activity, 8 hrs sleep in routine for optimal health, suggests study
- JNK India IPO allotment date
- JioCinema New Plans
- Realme Narzo 70 Launched
- Apple Let Loose event
- Elon Musk Apology
- RIL cash flows
- Charlie Munger
- Feedbank IPO allotment
- Tata IPO allotment
- Most generous retirement plans
- Broadcom lays off
- Cibil Score vs Cibil Report
- Birla and Bajaj in top Richest
- Nestle Sept 2023 report
- India Equity Market