What an Amazon-Owned J.C. Penney Might Look Like
It's only a rumor, to be clear, but hardly an outrageous one. Fashion website Women's Wear Daily reported on Tuesday that e-commerce giant Amazon.com (NASDAQ: AMZN) may be interested in acquiring struggling department store chain J.C. Penney (NYSE: JCP). Without naming the source, Women's Wear Daily quoted a source familiar with the matter as saying: "There is an Amazon team in Plano [Texas] as we speak. There is a dialogue and I'm told it has a lot to do with Amazon eager to expand its apparel business -- for sure."
If the premise rings a bell, there's a reason. Amazon was also reportedly interested in an acquisition of rival brick-and-mortar name Kohl's (NYSE: KSS) after striking a deal that allowed the retailer to handle Amazon's merchandise returns. It does own grocery chain Whole Foods Markets, plus a couple dozen convenience stores, plus one full-sized grocery store in Seattle. There are also a dozen physical bookstores in the Amazon family, although they sell much more than just books. Toys, electronics, and gadgets are featured, including plenty from the company's own private label lineup. Wading into the apparel and accessory arena wouldn't be an unusual stretch for Amazon.
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Source Fool.com
