The London Sunday Times reported that Amazon.com and Walmart (WMT
) are in alliance talks. Goldman Sachs would view the partnership favorably.
Analyst Anthony Noto says a strategic retail alliances can provide direct buying opportunities, reduce inventory exposure, lower customer acquisition costs, increase frequency of purchases and give Amazon.com access to new customers. Noto says given the current decelerating outlook for e-commerce growth, the impact of these partnerships is increasingly important. He says partnerships could fill key voids or limitations in Amazon's business by broadening its appeal and improving its economics model.