Whole Foods customers are already seeing lower prices since e-commerce giant Amazon’s $13.7 billion acquisition of the supermarket.
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Scott Galloway, 'The Four' author and NYU Stern marketing professor, who predicted Amazon’s acquisition of Whole Foods, has now come out with a new prediction: Amazon is now setting its sights on luxury department store Nordstrom.
“So now they have intensity across the wealthiest refrigerators in America, but they still haven’t been able to bust into the wealthiest closets because they don’t have distribution with aspirational brands,” Galloway told the FOX Business Network’s Maria Baritormo on “Mornings with Maria.” “Christian Louboutin or Louis Vuitton or even Estee Lauder have a no, zero, engagement policy with Amazon.”
According to Galloway, Nordstrom would help give Amazon immediate access to access to most luxury brands.
“If they acquired Nordstrom, in addition to getting 550 great stores fantastically located in densely, affluent populated neighborhoods, they’d also get immediate relationships with pretty much every luxury brand.”
On the other hand, Galloway said the family that controls Nordstrom could be a potential roadblock to a deal.
“There’s an X factor here in that Nordstrom is family-controlled, so these decisions get made around the Thanksgiving dinner table, not in shareholder or boardroom meetings,” he said.
The professor said buying a luxury department store wouldn’t hurt Amazon’s mass-market appeal.
“It’s the other way around, you’d rather have the luxury brands and then move down. It’s much easier … once you have Chanel, every other brand will follow.”