"Although it may take time for investors to be willing to reenter the space, we believe this may actually have made the 'winners' within our retail/brands coverage (which have already been coping through the Amazon threat) more investable," Nomura analyst Simeon Siegel wrote in a research note on Monday, June 26.
As Amazon appears to be encroaching on every aspect of retail, with its recent $13.7 billion purchase of organic grocer Whole Foods Market Inc. (WFM) , its adoption of a try-before-you-buy system through Prime Wardrobe and its expansion of its bricks-and-mortar book stores, Nomura said several retailers including Ulta Beauty Inc. (ULTA) - Get Report , TJX Co. Inc. (TJX) - Get Report , Ross Stores Inc. (ROST) - Get Report and Nike Inc. (NKE) - Get Report could actually stand to gain from this impending Amazon reign.
First, Nomura said that Prime Wardrobe will likely drive higher return rates, "keeping excess inventory alive," therefore keeping off-price retailers like T.J. Maxx and Ross Stores alive.
Plus, Nomura previously highlighted Ulta, TJX and Ross Stores as "e-comm defensible companies."
Nike's anticipated boost is based on the assumption that the athletic apparel and shoemaker will begin selling its products on Amazon.com, as Goldman Sachs hinted at last week.
"Nike is one of the few not already selling through Amazon and joining Amazon's Brand Registry should boost its merchandising role, limit counterfeit goods and help level the playing field with Adidas (ADDYY) and Under Armour (ADDYY) (already selling through Amazon)," Siegel wrote in the note.
Siegel said "synching up with Amazon" could result in "cannibalizing sales" for Nike.
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