Amazon eyes J.C. Penney deal for apparel expansion

Amazon is in talks to acquire bankrupt J.C. Penney.

”There is an Amazon team in Plano as we speak,” said a source in a report by WWD referring to the Texas city where J.C. Penney is based. “There is a dialogue and I’m told it has a lot to do with Amazon eager to expand its apparel business" the article states.

“Although J.C. Penney has many undesirable store locations, that won't matter to Amazon for this reason - for every JCP store that doesn't fit its need for retail, it will more than likely fit their needs as a dark store for fulfilment, or groceries,” says Brittain Ladd, a supply chain consultant and former Amazon exec.

The wild card in all of this is Sephora, he adds. The company is committing suicide by retaining its relationship with JCP, Ladd argues.” Could Amazon be after Sephora and not JCP? It's possible. Don’t be surprised if Amazon kicks the tires on Kohl’s as well.”

“The cost to acquire Kohl’s and/or JCP, has diminished significantly over the last three months. (If Amazon acquires JCP, Kohl’s is dead. Guaranteed). Target remains my preferred acquisition for Amazon. But Amazon must do more to improve its reputation among members of US Congress and the public. Acquiring 118-year-old J.C. Penney will generate a lot of good will,” Ladd concludes.

Amazon did not respond to our request for comment.

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