TibetanTailor

We were shopping at the Christmas Tree Store over the weekend. They have shopping carts in the BACK of the store. So if you are in there shopping and you are in the back of the store and you didn’t get a shopping cart when you walked in the front door and you now find yourself with too many things to carry – no problem – just get a shopping cart right there – no need to go back to the front of the store (or worse – no need to put anything down.)

It seems inevitable that Amazon will be soon living in a post sales tax world. Here’s one idea on how that might change Amazon’s strategy . . .

Potential Scenario

Amazon has an edge right now. They don’t pay state sales tax. It gives them an advantage that perhaps 5% over competitors who have a psychical store in a state (which makes them pay the tax.) I see the state budget situation forcing states to force amazon to collect.

Impact & Change

If that happens, Amazon wouldn’t have any reason not to invest in physical locations. How could they do that quickly? Rite-Aid.

They have 4800 locations in 31 states.  Drive through!

Disclosure

I own Rite Aid stock.