To: Skeeter Bug who wrote (123449 ) 4/10/2001 7:45:17 PM From: Boplicity Read Replies (2) | Respond to of 164685 Amazoncom May Unveil Retail Partnership Tomorrow, Analyst Says New York, April 10 (Bloomberg) -- Amazon.com Inc. may announce a partnership tomorrow with a traditional retailer, similar to the alliance between the No. 1 Internet merchant and Toys ``R'' Us Inc., an analyst said. Amazon.com scheduled a press conference in New York at 8 a.m. local time with Chief Executive Jeff Bezos. No other details were available, said Richele Craveiro of Golin/Harris International, the public relations firm helping organize the event. Amazon.com officials couldn't be reached to comment. The Internet merchant has an alliance with Toys ``R'' Us, the biggest retail toy chain. Amazon.com is expected to form similar arrangements with other kinds of merchants, analysts said. In March, TheStreet.com said Amazon.com was discussing a potential alliance with Best Buy Co., the top electronics chain. ``If I were to guess (the nature of the press conference), I would think this is possibly an announcement with another retailer,'' said Salomon Smith Barney analyst Tim Albright, who has an ``outperform'' rating on Amazon.com stock. The alliance may be with an apparel or electronics merchant, he said. Amazon.com, which started as a book dealer, doesn't have a clothing site. Electronics is its biggest business after books, music and videos. Under the toy partnership, Seattle-based Amazon.com handles warehousing and customer service, while Toys ``R'' Us selects inventory. The agreement paired an Internet retailer that had trouble learning the toy business with a toy-industry leader that had difficulty making inroads on the Internet. Electronics Amazon.com's success in electronics, which helped the Web merchant narrow its fourth-quarter loss, wouldn't necessarily preclude the company from linking up with a ``brick-and-mortar'' chain, Merrill Lynch & Co. analyst Henry Blodget said. ``If there's a good deal to be struck with a major electronics retailer, I think you'd see Amazon.com be happy to do that,'' said Blodget, who has an ``accumulate'' rating on the stock. ``I think over time Amazon.com will be increasingly ambivalent about whether it is the direct retailer of goods or whether it is simply facilitating a third party.'' Best Buy spokesman Jim McManus and Jim Babb, a spokesman for No. 2 electronics-chain Circuit City Group, declined to comment. Amazon.com shares, which have dropped 81 percent in the past year, rose 83 cents to $12.01. The news conference was announced after the close of U.S. markets.