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George Newton

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  • Posted on: 04/25/2019

    Kohl’s goes all-in on Amazon returns

    Amazon is not smart in the brick and mortar. They tried with the Amazon Kiosks and now Amazon is going to close all of them. Amazon was not also able to compete in China and had to give up. So I guess the next step will be a partnership first (to understand how brick and mortar really works. The same thing that Amazon does in its marketplace -- it checks which products sell more and then copies them to sell as its own brand) and after the partnership, once Amazon understands how it works ... we'll see a takeover.
  • Posted on: 04/25/2019

    Kohl’s goes all-in on Amazon returns

    Kohl's has around 1,100 stores in the USA. Kohl's has a market value of 11B$ and 20B$ revenue (market value/revenue= 0.55) and a net debt around 2B$. Last month Alibaba started a "collaboration" with Office Depot. Office Depot has around 1,350 stores in USA. Office Depot has a market value about 1.3B$ and 11B Revenue (market value/revenue = 0.12 vs 0.50 of Kohl's). Office Depot has around 170M$ net debt. Why did Amazon chose a much more expensive partner with fewer stores? Is a Brick and Mortar takeover battle going to start? BABA could enter into USA with a very small investment. The Office Depot takeover should cost less than 2B$ and with a such a small investment Baba could get 11B$ more revenue, positive earnings, more cash flow plus a strong presence in USA with 1350 stores. It sounds strange to me that Amazon didn't have even 2B$ cash to get quickly 1,350 stores plus 11B$ revenue, and preferred to partner with a much more expensive company with fewer stores. I think we'll soon see a brick and mortar takeover battle....
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