It took just a few hours for analysts to speculate what's next for Amazon.com, Inc. AMZN after announcing its intention to acquire the organic grocery chain Whole Foods Market, Inc. WFM.
Tom Forte, the managing director of Maxim Group, is among the first to look what big acquisition Amazon should be considering. Speaking to CNBC, he said Amazon CEO Jeff Bezos needs to complete acquisitions in apparel and physical stores. Subject to customary approval, Amazon has now completed an acquisition in physical stores, which means an apparel acquisition is next.
Amazon may want to consider an acquisition of Lululemon Athletica inc. LULU, Forte said. He explained that the high-end altheticwear brand isn't "over-stored" as some of its competing products are. Buying the brand would give Amazon immediate access to the category, which has been popular among younger shoppers.
But first Amazon needs to finalize its acquisition of Whole Foods and a play for Lululemon would only make sense down the road. If anything, Amazon's deal to acquire Whole Foods signals the online giant has enough cash to pursue deal after deal.
Another example Forte offered is an acquisition of BJ's Wholesale Club so Amazon can get into the business of selling gas.
Related Links:
Comparing Walmart And Amazon's Recent Acquisitions
The Effects Of Amazon-Whole Foods Deal Will Be Wide Spanning; Grocers Already Taking A Big Hit
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