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BUSINESS Wednesday 15 november 2017
A25

Amazon or Walmart? Some retailers are choosing alliances

By ANNE D’INNOCENZIO You look at retailers who
AP Retail Writer are closing or struggling.”
NEW YORK (AP) — Store So as Amazon moves even
chains feeling the upheav- further into fashion, home
al in retail are making stra- electronics and grocery
tegic alliances — and that stores, and cements shop-
can mean picking sides. per loyalty with its $99-a-
Kohl’s shoppers can find year Prime membership,
Amazon devices at some stores are developing part-
stores, and return items nerships with the online re-
they bought from the on- tailer to increase customer
line retailer. Nike has made traffic or expand their offer-
some of its sneakers avail- ings online.
able through Amazon. The At the participating Kohl’s
owner of Sears is selling stores, shoppers will find
Kenmore-branded appli- 1,000-square-foot Amazon
ances on Amazon in some areas that sell Echos, Fire
markets. And Best Buy is tablets and other gadgets.
teaming up with Amazon People can also arrange
for voice shopping. to have an Amazon em-
Meanwhile, Walmart, ployee visit their home and
which has the most store install a device or recom-
locations, is assembling a mend smart home prod-
coalition of its own: buy- ucts to buy. And some In this Thursday, July 20, 2017, file photo, the Kenmore Elite Smart French Door Refrigerator appears
ing smaller online brands stores pack and ship eli- on display at a Sears store in West Jordan, Utah.
and becoming the highest- gible Amazon return items Associated Press
profile partner to Google for free. portion of the space. have a median income of buy the brands. “It has to
in voice shopping. And the Kohl’s hopes the arrange- Neither company would $85,000, Johnson estimates. be presented well,” Lieb-
discount chain that touts ment brings in shoppers say the financial details of Liebmann says the bigger mann said.
low prices announced a who might pick up clothes the arrangement. question is whether there Overall, Bines expects Am-
web partnership Monday or home items. Denise Incandela, head of would be any resistance azon and Walmart to an-
with high-end department Analysts say other depart- fashion at Walmart’s U.S. from Lord & Taylor shop- nounce more partnerships.
store Lord & Taylor. ment stores, facing the e-commerce division, says pers. Bonobos and Mod- “In the next two or three
“When you are in an his- same kind of issues, could it’s focusing on specialized Cloth fans complained vo- years, companies will
toric uncharted chaotic follow. shopping experiences, ciferously on social media chose sides,” he said. “But
situation, you often see From its base with 4,700 starting with fashion. when reports were swirling after that, the lines will be
these strange bedfellows,” U.S. stores, Walmart is lining Since the $3 billion-plus about Walmart’s move to blurred.”q
said Joel Bines, co-head of up other partners. In voice acquisition of Jet.com last
AlixPartners’ retail practice shopping, it hooked up with year, Walmart has bought
and a managing director Google, which has signed several online brands like
at the firm. up other chains such as Bonobos and ModCloth.
Since the beginning of the Target and Home Depot Analysts say Walmart is
year, several retailers have to fight the dominance of developing its own high-
filed for bankruptcy protec- Amazon’s Alexa-powered er-end online mall as a
tion, including well-known Echo devices. way to counter Amazon’s
names like Toys R Us. And Lord & Taylor’s president dominance. Bines said
retailers have announced Liz Rodbell told The Asso- it’s a good strategy, since
thousands of store closings, ciated Press the arrange- Walmart.com could at-
with more expected. Ana- ment with Walmart allows tract “an entirely different
lysts say some brands real- the chain to attract new demographic” from the
ize they might not succeed customers who already are chain’s physical stores.
alone. buying higher-end prod- Walmart store customers
“You have to be chal- ucts on Walmart.com. have a median household
lenging accepted norms. She called the partnership income of about $48,000,
So you might find partners “a pivotal moment” for the below the $56,000 for
that you normally wouldn’t retailer. It comes after the walmart.com customers,
have considered,” said chain’s parent company according to Craig John-
Wendy Liebmann, CEO of announced last month it son, president of the retail
WSL Strategic Retail. “This was selling its New York consulting group Customer
has exploded because of flagship building to We- Growth Partners.
the urgency to change. Work and leasing back a Amazon.com shoppers