Amazon is using a key advantage to threaten Bed Bath & Beyond and Wayfair
Amazon is investing heavily in home decor and furnishings. The new push is already causing issues at Bed Bath & Beyond, which has reported declining sales. Wayfair could also be hurt by the Amazon's new strategy. Amazon is making a huge push into home furnishings — and it could spell trouble for Wayfair and Bed Bath and Beyond.
One of Amazon's biggest advantages over competitors? It knows when Prime members are moving and wanting new decor and furniture.
"To keep those Prime deliveries coming, customers have to notify Amazon of their change in residence. With that kind of big data, Amazon can anticipate their customers' next need and push out offers targeted to those needs," luxury retail analyst Pam Danziger writes on her blog.
It's estimated that more than half of US households use Amazon Prime, which costs $99 a year and gets you free 2-day shipping and discounts on certain items.
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Bed Bath and Beyond's brick-and-mortar sales have been declining rapidly, and analysts at Morgan Stanley say they don't expect business to get better.
"We think Bed Bath & Beyond is facing a number of challenges," the analysts wrote in a recent note to clients. "It has invested significantly in the past few years to upgrade its omni-channel capabilities. But, its top-line growth has decelerated as traffic to its stores has dwindled pretty rapidly."
Business has been booming at Wayfair — an e-commerce company that sells furniture and decor — but its success could easily be threatened by Amazon.
"Wayfair simply hasn't the depth or reach into their customers' life stages to match that of Amazon," Danziger writes. "In order to avoid being 'Amazoned,' it is going to have to make the quantum leap from e-commerce into the real brick-and-mortar world of retail like so many digitally-native brands are starting to do."
Few industries are immune to the threat of Amazon. Macy's, Energizer, and Barnes & Noble have all been hurt by the e-commerce giant.
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