The #Covid19 crisis is proving to be a final blow to a lot of large traditional retailers who were already struggling to cope with the ever-changing digital retail era. If reports are to be believed, then #Amazon might buy #JCPenney in the next few months. It is quite an interesting fact to know that both the companies were valued at $14bn in May 2005. However, after 15 years in May 2020, JC Penny filed for bankruptcy and up for sale now and Amazon is worth $1.2tn.
Its current market cap stands at $58M which is 0.11% of Amazon’s cash on hand ($49.29B) & 0.30% of Amazon’s 2019 marketing spend ($18.88B) so it’s a pocket change for Mr. Bezos however this deal would give him a lot of “ REAL ESTATE” & most importantly help Amazon in its push towards #Fashion and #Clothing segment.
The way tech is changing the world especially in the last decade or so & how lethal & dangerous innovation inertia could be for any business these days, here is the classic case study !!