Amazon is exploring a premium furniture assembly service, Bloomberg reported on Friday. According to the report, Amazon is experimenting with a premium service that would allow customers to opt for furniture assembly or appliance installation as soon as such items are delivered to their homes.
The move would enable Amazon (AMZN) to take on other furniture and home goods retailers like Wayfair (W), Best Buy (BBY), Home Depot (HD) and Lowe’s (LOW), Bloomberg said.
The report, citing unknown sources, said that AMZN is planning to introduce the furniture assembly service in Virginia and two other markets. Currently, Amazon only delivers furniture and appliances but doesn’t offer their assembly or installation.
Bloomberg said that the new service will involve the drivers not only delivering, unpacking and assembling the items, but also taking it back if the customer is not satisfied. The report said that this new service, if adopted, could simplify the company’s existing Amazon Home Services, available in select cities in the United States that allows customers to hire contractors through its website for furniture assembly or installation of electronic appliances. (See Amazon stock analysis on TipRanks)
Wayfair overtook Amazon as the biggest online retailer of furniture and home goods in 2019, according to the Bloomberg report, citing 1010Data .
On April 15, Morgan Stanley analyst Brian Nowak reiterated a Buy rating and a price target of $4,200 on the stock after AMZN confirmed its plans to open four grocery stores on the East Coast.
Nowak told investors that it has been reported that Amazon plans to build almost 100 additional stores over and above the 12 Fresh stores currently operated in CA and IL.
Shares of Amazon have jumped 10.5% in the past month.
Consensus among analysts is a Strong Buy based on 32 Buys. The average analyst price target stands at $4,103.27 and implies upside potential of 20.7% to current levels.
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