FedEx in the Brave, New, World of Retail

FedEx benefits because it is still Walmart’s delivery service of choice for online orders. Walmart’s push to attract new rural, middle-class and upper-class customers will benefit FedEx because those customers rarely go near Walmart stores. An example of this push was the purchase of the men’s clothing site Bonobos which sells mostly online to males that hate to shop.

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Costco’s Sales Approach $130 Billion

What’s more impressive is that Costco achieved that revenue growth with one website and brick and mortar stores in a handful of countries including the U.S., Canada, Japan, and Australia. Amazon has vast diversified operations that include Amazon Web Services, a movie studio, Amazon Prime, dozens of lines of private label products, Zappos, Whole Foods, and far more.

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Can Barnes & Noble be saved??

Nordstrom has demonstrated that retailers like Barnes & Noble might have more value than many people think. Unfortunately, that value is not presently being exploited in any sort of meaningful way. Barnes & Noble is doomed without an acquisition or a radical change in business plan.

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Is it the End for Office Depot?

This might make Office Depot more of an electronics services firm and put it in a good position to form some sort of partnership with Amazon (NASDAQ: AMZN). An obvious future for Office Depot would be a service center for Amazon electronics and a brick and mortar location for Amazon returns and pickups. A logical move for Amazon would be to buy Office Depot.

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What is happening at Nordstrom?

The situation at Nordstrom is teaching a hard lesson that all investors need to learn. It is even good stocks and brands will suffer in the retail apocalypse.

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TJX: Department Stores that make money what’s up with that?

By shrewdly taking advantage of the opportunities created by the retail apocalypse, TJX has grown into America’s dominant department store brand. It is liable to remain in that position for a long time to come because of the sheer ineptitude of the competition.

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Walmart wants Access to Your Fridge, Amazon wants French Grocery Stores

Details of the partnership were not available but it would presumably involve E. Leclerc accepting Amazon returns and possibly letting customers pick up Amazon orders in its stores. Another possibility is that customers might be able to order groceries from E. Leclerc through Amazon. Amazon recently entered into a similar arrangement with the ailing American department store chain Kohl’s (NYSE: KSS).

The privately-held E. Leclerc is France’s largest supermarket with 21.1% of the nation’s grocery market in April 2017, Statista reported. There were unsubstantiated rumors that Amazon might attempt to buy France’s second largest grocer Carrefour (OTC: CARR). Carrefour currently controls 20.9% of the French grocery market.

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Will Amazon save Kohls from Oblivion?

Taking Amazon returns would only help Kohl’s if it is the only store in town doing so.

If the arrangement increases Kohl’s foot traffic, every other retailer in town will run to Jeff Bezos’ office to ink a similar deal. People will be able to return Amazon merchandise at Kroger (NYSE: KR), Whole Foods (NASDAQ: WFM), Walgreens (NASDAQ: WBA), Best Buy (NYSE: BBY), Safeway, Costco Wholesale (NASDAQ: COST), Office Depot (NASDAQ: ODP), Publix, CVS Health (NYSE: CVS) and possibly 7-Eleven.

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Kroger Gets no Respect from the Market

Finally, Kroger’s low price raises an intriguing possibility that will creep some people out. What would happen if Amazon bought Kroger?

It’s not probable; and might not pass muster with the Federal Trade Commission (FTC), but it is a possibility we need to consider right now. Kroger is such a tremendous bargain right now, that it might attract Jeff Bezos’ attention.

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Will Best Buy Survive the Retail Apocalypse?

Acquiring Best Buy would be a smart and logical move for Amazon.

Best Buy’s 1,026 stores would give Amazon a brick and mortar footprint for pickup and delivery. Those stores would serve as ideal locations for people to see and test Amazon merchandise and get familiar with new Amazon products such as Echo, Amazon TV, Kindle, and Fire. Best Buy could serve as Amazon’s answer to the Apple Store.

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