Mergers That Could Dethrone Amazon: Sears (SHLD) and Home Depot (HD)
OK, let’s not overstate the opportunity here. Sears teaming up with Home Depot Inc (NYSE:HD) isn’t one of those mergers and acquisitions and acquisitions that could pull the rug out from underneath Amazon; there’s not a lot of overlap between what the two retailers sell and what Amazon sells.
In terms of tools and home and garden, though — and appliances — at least the pairing could prevent Amazon from moving any deeper into that category.
Plus, there’s the obvious connection between Sears’ now-former Craftsman brand and the fact Home Depot is a huge tool venue. In fact, the buyer of the brand name, Stanley Black & Decker, Inc. (NYSE:SWK), is already a key vendor for Home Depot, while the psychological link between Craftsman and Sears is palpable. Home Depot might be able to leverage that.
The other side of the coin: Home Depot is anything but a clothing retailer, and would have to figure out how to get out of that business, keep the hardlines and white goods business, keep the best real estate and cull the dead weight.
Still, it’s a curious possibility.