This article appeared at 9:30 a.m. EDT on RealMoney Sept. 5.
SunTrust analyst Bob Peck is putting out the thought today that Amazon should buy RadioShack. He has a good idea, but has the wrong company. Let me explain: In Peck's piece today, he says:
"As we've been thinking about the expansion of eCommerce into local, we have also noticed the decline of several local chains. This can be for a variety of reason, including: bad locations, over build out of stores, inability to keep up with the changing consumer demands, and poor inventory. The most recent struggling chain is RadioShack. In fact, its CEO, Joe Magnacca, said last week that the company may have to seek bankruptcy and try to reorganize the company and its 4,000+ locations. We think Amazon should consider buying some of the locations in bankruptcy for several reasons: 1) No tax law issues; 2) Amazon is already focused on local; 3) Showcase Amazon products and services (launch new services); 4) Improve pickup and distribution; 5) Broader ecosystem lift."
But as I wrote two years ago, maybe the better bet would be Amazon buying Best Buy. Seemed like a crazy idea at the time, but as I wrote:
"And no, I'm not totally nuts.
Here's the way I'm thinking about it: No matter what anybody will tell you, when it comes to new electronics and other products, such as appliances, most people still want to feel, touch, and hold them — and maybe even actively be sold by somebody who can explain how they work. (Been in an Apple store lately?)