Amazon always seems to be up to something in the retail sector, with reports suggesting the "something" this month could very well be a massive acquisition. People familiar with the matter reported that Amazon may be considering acquiring J.C. Penney as it builds out its brick-and-mortar grocery footprint.
The original report, found on Women’s Wear Daily (WWD), revealed that J.C. Penney—which is currently looking at shutting down 200 stores—is considering options as it faces bankruptcy. One such option is selling its operations, and Amazon is a contender for part of the chain’s assets—or all of them.
“There is an Amazon team in Plano, Texas, as we speak,” remarked one source to WWD, who does business with Amazon. “There is a dialogue [….] This could be a new tech-driven retail model.”
Though Amazon did not comment on the reports, many have speculated that the e-tailer could be considering converting certain J.C. Penney locations into distribution centers or Amazon Go locations. The source noted that J.C. Penney currently has about 30 freestanding locations with a lot of land, which could easily be converted for Amazon’s purposes.
Will Amazon once again rock the grocery retail sector with another seismic acquisition? Stick with Deli Market News as we continue to report.