The mortar of moolah cemented clicks with bricks yesterday with the announcement that Amazon.com and Toys ‘R’ Us are to merger their online toy retailing operations.
Triggered, in all probability, by the slump in investors’ confidence in e-tailing, the chief executives of both companies claimed that the merger would result in the TRU business breaking into profitability in 2002 – two years earlier than predicted. It would also advance the long-awaited day when Amazon emerges from the red, although Amazon chief executive Jeff Bezos omitted to put a date on that happy event.
The duo will launch their co-branded toys website in time for the Christmas season. Product selection, purchasing and inventory management will be handled by TRU, while Amazon will operate the site fascia, order fulfilment and customer services.
News source: Financial Times