Author Topic: Amazon said to consider buying some Toys R Us stores  (Read 736 times)

thelakelander

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Amazon said to consider buying some Toys R Us stores
« on: March 20, 2018, 11:05:17 PM »
Quote
Amazon.com has looked at the possibility of expanding its retail footprint by acquiring some locations from bankrupt Toys R Us Inc., according to people with knowledge of the situation.

The online giant isn’t interested in maintaining the Toys R Us brand, but has considered using the soon-to-be-vacant spaces for its own purposes, said the people, who asked not to be identified because the talks are private.

Such a move would let Amazon quickly expand its brick-and-mortar presence, coming on the heels of buying Whole Foods Market Inc. and its more than 450 locations last year. The Seattle-based company also has opened its own line of bookstores and a convenience-store concept.

Representatives for Amazon and Toys R Us declined to comment.

Full article: http://www.theledger.com/news/20180320/amazon-said-to-consider-buying-some-toys-r-us-stores
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jaxjaguar

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Re: Amazon said to consider buying some Toys R Us stores
« Reply #1 on: March 20, 2018, 11:34:06 PM »
Gotta secure money for all of the execs to get their golden parachutes some how...

marcuscnelson

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Re: Amazon said to consider buying some Toys R Us stores
« Reply #2 on: March 20, 2018, 11:56:39 PM »
There was an article in the Daily Record about how the landowner of where Toys R Us is was happy that both it and Best Buy would be vacant together, because that's 100,000 sq ft of space they can package together and sell to one tenant. Maybe this is the chance to put Whole Foods at SJTC?

KenFSU

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Re: Amazon said to consider buying some Toys R Us stores
« Reply #3 on: March 21, 2018, 12:16:32 AM »
This is all going to be very interesting to watch in the coming years. Amazon has thus far avoided antitrust scrutiny by 1) being more price competitive than everyone else, theoretically to the betterment of the consumer, and 2) conducting most if its business in the online space. But now, we've seen this pattern emerging where Amazon is putting the squeeze on entire brick-and-mortar industries - booksellers, supermarkets, delivery services - undercutting them on prices via massive economies of scale/scope and subsequent leverage with suppliers, putting them out of business in some cases, and then sweeping in to pick at the physical bones or even launch their own brick and mortars out of the ashes to replace the ones they put under.

What's really scary, and in my opinion anti-competitive, is Amazon's rapid move into grocery delivery through their acquisition of Whole Foods. Per the above article, Amazon may be considering using these locations to quickly stockpile square footage for Whole Foods grocery staging and delivery. It's important to note that when weighing antitrust matters, courts have the power to weigh both an action's effect on existing competition AND future competition. By acquiring Whole Foods and aggressively moving to beat everyone else to market on large-scale grocery delivery, you could definitely make a case that Amazon is impeding future competition and creating a nearly insurmountable barrier to entry for competition. Not just in terms of manpower and resources either, but perhaps even more importantly in 2018, in terms of its insane dragnet of data on both customers and suppliers.

If we're not careful, we're a blink of an eye away from half the country working for Amazon.

I'm not even sure if that's an exaggeration.

How do you compete with that type of infrastructure and data?

marcuscnelson

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Re: Amazon said to consider buying some Toys R Us stores
« Reply #4 on: March 21, 2018, 02:03:06 AM »
This is all going to be very interesting to watch in the coming years. Amazon has thus far avoided antitrust scrutiny by 1) being more price competitive than everyone else, theoretically to the betterment of the consumer, and 2) conducting most if its business in the online space. But now, we've seen this pattern emerging where Amazon is putting the squeeze on entire brick-and-mortar industries - booksellers, supermarkets, delivery services - undercutting them on prices via massive economies of scale/scope and subsequent leverage with suppliers, putting them out of business in some cases, and then sweeping in to pick at the physical bones or even launch their own brick and mortars out of the ashes to replace the ones they put under.

What's really scary, and in my opinion anti-competitive, is Amazon's rapid move into grocery delivery through their acquisition of Whole Foods. Per the above article, Amazon may be considering using these locations to quickly stockpile square footage for Whole Foods grocery staging and delivery. It's important to note that when weighing antitrust matters, courts have the power to weigh both an action's effect on existing competition AND future competition. By acquiring Whole Foods and aggressively moving to beat everyone else to market on large-scale grocery delivery, you could definitely make a case that Amazon is impeding future competition and creating a nearly insurmountable barrier to entry for competition. Not just in terms of manpower and resources either, but perhaps even more importantly in 2018, in terms of its insane dragnet of data on both customers and suppliers.

If we're not careful, we're a blink of an eye away from half the country working for Amazon.

I'm not even sure if that's an exaggeration.

How do you compete with that type of infrastructure and data?

What would be the likelihood and feasibility of breaking Amazon up? And what about preventing a future reconsolidation like how Ma Bell ended up mostly reforming as the modern AT&T and Verizon?