The past five years have been a transformative period in how people prefer to buy their goods. Department stores have been among the worst hit — as have other segments. For the most part, this has only affected durable goods. But with Amazon’s acquisition of Whole Foods, this is going to change significantly. Amazon’s main superpower is that it has a very good understanding of how to run a distributed supply chain, and how to categorize SKUs and target products according to mined data. Its loyalty program, Prime, is also second to none. While there are many categories of retail businesses at risk of being squashed by Amazon, by far the ones that have the most to worry about are those with significant investments in brick and mortar infrastructure.
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