Investor: Borders Should Consider Amazon.com Deal
New York City William Ackerman, the billionaire hedge fund manager who is a major stakeholder in Borders Group Inc., said the bookseller should consider approaching Amazon.com Inc. about a possible acquisition, according to the Associated Press.
The founder of Pershing Square Capital Management said Borders, of which the hedge fund owns about 30%, could become the “bricks-and-clicks” component of Amazon’s nationwide sales strategy. Borders, which put itself up for sale in March, has about 500 retail outlets across the country.
“Amazon could buy the company for about $400 million to get those locations that would take more than $1 billion to build,” he told reporters on the sidelines of a conference in New York, according to the report. “You have to think of it like how Apple has retail stores across the country.”
Ackerman said that once Amazon loses its tax advantage that buying retail locations will make sense, the report said. He believes customers will benefit from getting same-day delivery that a network of retail stores can provide, and Amazon would also get an opportunity to sell other products not currently carried at Border’s locations, according to the report.
Report: Gap Inc. focus on retooling stores
NEW YORK Gap Inc. is refocusing its efforts on using its existing real estate to create smaller stores, rather than open new stores, ceo Glenn Murphy siad at the PiperJaffray conference, according to The Associated Press.
According to the AP, Murphy said that Gap has too many stores that are too large for anything other than flaghsips or signature locations. The stores are 12,500 square feet each. Murphy said stores should ideally be between 6,000 square feet and 10,000 square feet.
Winn-Dixie: Publix, Albertson’s deal won’t affect performance
JACKSONVILLE, Fla. Commenting on the recent news that Albertson’s LLC will sell its 49 Florida stores to Publix Super Markets, Winn-Dixie chairman, president and ceo Peter Lynch, said that the transaction should not have a major impact on his company’s performance.
“Based on our analysis, only 10 of the 49 stores are within a two-mile operating radius of a Winn-Dixie location that does not currently compete with an existing Publix,” said Lynch. As a result, we do not believe this transaction will have a material impact on our long-term strategy or performance. Our remodeled stores continue to generate positive results. As we move forward, we will monitor business conditions and fine-tune product assortment, pricing and merchandizing efforts in each store to meet the needs of the communities we serve.”
Albertson’s said it has accepted an offer from Publix Super Markets to purchase 49 of the company’s stores in Florida. The company intends to operate its remaining Florida division stores with the ongoing support of its distribution center in Plant City and division office in Lake Mary, Florida. The acquisition is expected to be complete in September.