The last time he was a guest on Recode Decode, hosted by Kara Swisher, NYU professor and brand expert Scott Galloway casually (and accurately) predicted that Amazon would buy Whole Foods. On this weekâ€™s episode, he returns to share some new forecasts.
â€œThe logical next one would be Nordstromâ€™s,â€ Galloway said. â€œIt would be cheap, itâ€™s in Seattle, theyâ€™re operationally very sound, itâ€™s a great company and theyâ€™re [Amazon is] trying to establish relationships with high-end brands, which they have been unable to do.â€
â€œNordstrom has those and a lot of credibility, and a lot of wealthy households have a Nordstrom credit card,â€ he added.
In other words: What Whole Foods is to groceries, Nordstrom would be to fashion. The company is currently traded on the NYSE and has a market cap of $7.7 billion. However, Galloway disclaimed that heâ€™s less confident that the acquisition would happen because Nordstrom is family-run.
â€œWhenever youâ€™re talking about a family-controlled company, you bring in family,â€ he said. â€œThey seem like wonderful smart, people, but you donâ€™t know what happens at Thanksgiving dinner.â€
On the new podcast, which was taped in mid-August, he envisioned a likelier big move for Amazon: A new service that Galloway dubbed â€œAmazon Prime Squared,â€ aimed at upping the frequency of new purchases from its highest-value consumers.
â€œTheyâ€™ll say, ‘We know a lot about you and you like us and you trust us, so sign up for this and weâ€™re going to start sending you boxes, two to three times a week,â€™â€ Galloway said. â€œOne of those boxes will have the stuff we think you want and one will be empty. You send what you donâ€™t want back in the empty box and weâ€™ll pick it up.â€
He repeated his prediction from his last appearance on the show, that Amazonâ€™s stock would be worth $1 trillion, arguing that Amazon Prime Squared users would start making $7,000 in purchases per year, versus todayâ€™s $1,300 for Amazon Prime.
Galloway said Amazon is in a uniquely powerful position, the first company ever that can perform â€œJedi Mind Tricksâ€ with the rest of the market.
â€œIt can destroy another company just by thinking about it,â€ he said. â€œJeff Bezos could take 10 or 20 percent of the market cap away from any Fortune 500 company tomorrow just by announcing heâ€™s going into their business.â€
Gallowayâ€™s first book, â€œThe Four: The Hidden DNA of Amazon, Apple, Facebook, and Google,â€ comes out on October 3. You can preorder it on â€” where else? â€” Amazon.
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