Ready, Aim, Acquire:

Millennial Acquisition per Click

André Bueno
Aug 29, 2017 · 2 min read

With Amazon (AMZN) closing on its acquisition of Whole Foods yesterday, the next phase of the retail massacre is poised to continue.

The showroom retail segment is next on the chopping block as Walmart (WMT) partners with Google (GOOG) to expand its online footprint in effort to stave off Bezos.

Counter intuitive right?

While Millennials are known for being fixated on technology, studies have shown that more than 53% make the majority of their purchases from brick-and-mortar retailers.

Shocking.

Turns out that it’s not just about the user experience (UX) but also about the feels in real life (IRL).

Back to the bricks.

According to the CEO of Foursquare (Jeff Glueck) we could potentially see AMZN and WMT/GOOG fight to acquire brands like Nordstroms and Warby Parker due to their customer base.

The rationale is simple: Gen-Xers and Millennials are blowing money fast and these companies want to capture a portion of those wallets.

Having access to these showrooom brands would allow further access to this demographic.

The case is straightforward for both retailers.

On one hand, Walmart is fighting to stay relevant in the internet retail space as they have been buying brands that diversify their offerings to appeal to Millennials (i.e. Bonobos).

In the other corner, we have Amazon who continues tightening their stronghold of the more affluent Gen-X/Millennial class while exploiting synergies with their new Whole Foods consumer base.

And they have been knocking it out of the park.

What does this mean for the retail environment?

Both platforms (AMZN and WMT/GOOG) could unlock value for their potential M&A targets.

Besides brand recognition, these showroom retailers could benefit from larger/globalizes distribution channels and economies of scale.

What do you think is next for these brands?

Join the conversation: www.LinkedIn.com/in/BuenoBomb

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André Bueno

Written by

@Forbes Contributor | Former I-Banker at Goldman Sachs and Morgan Stanley | Impact Investment Expert

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