Amazon disrupts 2 industries in 1 week!
Amazon continues to blow me away as they make strategic partnerships and acquisitions, what did they do this week?
First, Amazon is acquiring whole foods for approximately $13 billion which is a cause for concern among companies like wal-mart, and Kroger whose stock price dropped 26% since the news earlier this week. In fact, because of this Kroger approved adding $1 billion to their share repurchase program to help drive up their stock price and hopefully attract investors.
http://www.latimes.com/business/la-fi-amazon-whole-foods-20170616-story.html
Second, they are on the verge of a partnership with Nike to sell shoes directly through their site. Nike sells shoes through their subsidiary Zappo's but not with Amazon directly. With the recent launch of Prime Wardrobe this could completely change the way we shop for shoes as well, since they are allowing you to order up to 13 items and try them on from the comfort of your home. The best part? You can send back what you don't like and will only be charged for what you keep after a week.
Its interesting to see this news absolutely obliterated companies like Foot Locker and Dick's Sporting Goods. With that I do see the potential for gains to be made in Foot Lockers stock price who is both financially sound and currently trading at 10x earnings per share which is very low for the industry.
What do you guys think - Will Amazon change the way we buy food and clothes with the strategic moves they made this week, and could this be the end of retailers like Foot Locker?