Hey Glenn, when Forrester talks everyone listens.
>CHICAGO, March 12 (Reuters) - An alliance between e-tailer Amazon.com Inc. (NASDAQ:AMZN) and Wal-Mart Stores Inc.'s (NYSE:WMT) online arm, Walmart.com, would help the No. 1 retailer get ecommerce right, according to a report from Forrester Research Inc.
"Unloading Web operations to Amazon -- skilled at crafting a good online customer experience -- will free Wal-Mart to focus on one of its strengths: building in-store customer satisfaction," Carrie Johnson, a Forrester analyst, wrote in a report.
"It will start fixing problems its Web store created, like the inability of cross-channel shoppers to easily maneuver between online and offline Wal-Mart stores without running into pricing or product discrepancies," Johnson said.
Last week there were reports that Seattle-based Amazon and Wal-Mart were in talks to form a strategic alliance linking the companies' online operations. Neither company would confirm the talks.
Britain's Sunday Times reported on March 4 that the two retailers had held discussions about a deal in which Amazon would handle Wal-Mart's online strategy and develop a presence in the Bentonville, Ark.-based retailer's more than 4,500 stores. The paper also reported that Amazon would receive a much-needed cash injection.
A possible deal would help Amazon by giving it access to millions of Wal-Mart shoppers, save it from investing in new product categories and provide a deep-pocketed partner, the report said.
Johnson also said an alliance with Amazon would also "... solidify Wal-Mart's base of upscale online customers who, together with Amazon's, spend more than those who shop competitors ..." like Target Corp.'s (NYSE:TGT) target.com and Kmart Corp.'s (NYSE:KM) bluelight.com.
Walmart.com recently cut 10 percent of its work force in an effort to conserve costs, while Amazon shares have lost nearly 80 percent of their value in the last year due to worries about the e-tailer's ability to turn a profit.
Shares of Wal-Mart were off $1.66 at $49.12 in late morning trade on the New York Stock Exchange. Shares of Amazon were off $1-5/8 at $10-5/8 on Nasdaq. |
