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Costco Has No Strategy to Fight Off Amazon, Top Analyst Reveals

Get it together.

To compete with Amazon.com Inc. (AMZN) following its proposed $13.7 billion acquisition of Whole Foods Market Inc. (WFM) , Costco Wholesale Corp. (COST) needs to get into the e-commerce game fast, Barclays Capital Inc. analyst Karen Short wrote on July 13.

Since the acquisition was announced June 16, Costco shares have fallen 12.9%, compared to an overall S&P 500 increase of 1.7% during the same period. Even after reporting solid June same-store sales growth on July 6, shares have continued to lag.

"Investors are more concerned with how the Amazon/Whole Foods acquisition - announced on June 16 - will impact your business model 12 months from now than your ability to generate strong results for the next four quarters," Short wrote in a scathing open letter to top...


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