Amazon’s business is thriving, while Sears’ is flailing.
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. Amazon 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 centres, 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.
Business Insider Emails & Alerts
Site highlights each day to your inbox.