SunTrust's Bob Peck Offers Reasons Why Amazon.com, Inc. May Consider Buying Stores From RadioShack Corporation

In a report published Monday, SunTrust analyst Bob Peck offered five reasons why Amazon.com, Inc. AMZN should buy some of RadioShack Corporation's RSH stores:

• 1) No tax issues. Amazon originally avoided opening local stores because of tax laws, which have now shifted and don't provide a barrier any longer.
• 2) Amazon is becoming focused on local stores. With the roll-out of its Fresh grocery delivery service, Amazon is beginning to open local stores.
• 3) Showcase Amazon products and services. By opening store locations, consumers are able to go into the stores and physically test out Amazon products before purchasing them.
• 4) Improve pickup and distribution. Former RadioShack stores could provide a place for consumers to pick up goods, and provide a place for Amazon couriers to store and pick up merchandise.
• 5) Broader ecosystem lift and potential category expansion. By offering store locations, Amazons third-party sellers would benefit from having products available locally.

Peck stated, "we have no direct knowledge on whether Amazon is currently considering participating in a potential RadioShack reorganization or another local retail strategy."