Following a highly publicized acquisition of food retailer Whole Foods this past year, e-commerce giant Amazon.com, Inc. (NASDAQ:AMZN) has seen its stock price shoot higher on expectations that further disruption and gains in market share will propel the company even higher.
While grocery retail may not be as lucrative as other segments which drive Amazon’s profitability currently, the reality is that the deep pockets of Amazon seem to find a way into segments which others may have previously anticipated may be too difficult or costly to enter.
In addition to grocery retail, Amazon has been making moves into fashion retail, launching its own service to consumers with great success thus far. The integration of Whole Foods into Amazon’s business model, as well as the announcement that the company will be launching its "Amazon Go" stores in more cities in the near future, has indicated to some that bricks and mortar may become more of a staple commodity for the internet retailer, as the firm attempts to reach a broader consumer base in new ways.
One company I believe could be on the radar for Amazon is a fellow Seattle-based bricks and mortar retailer: Nordstrom, Inc. (NASDAQ:JWN). Nordstrom has had success with its e-commerce platform, making this company a competitor to Amazon’s up-and-coming fashion retail business. Additionally, Nordstrom’s impressive portfolio of key real estate holdings throughout North America could be viewed as a strategic asset to employ moving forward.
We will have to wait and see, however I expect new M&A action in the coming quarters as Amazon looks for new ways to grow.
Invest wisely, my friends.
