Amazon.com’s (AMZN) foray into industrial equipment, lab tools and other items for business customers is hammering some traditional commercial equipment suppliers, including W.W. Grainger (GWW).
The world’s largest retailer on Monday launched its AmazonSupply, with more than 500,000 items that run the gamut from drill bits to laboratory centrifuges. The giant online hardware store for industrial and business clients could spell trouble for existing industrial supply distributors.
Grainger sells similar industrial supplies to about 2 million businesses and institutions in 157 countries.
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In a research note, Citigroup pointed out that Grainger’s online sales are more than one-fourth of total sales and are growing at twice the pace of brick-and-mortar sites. AmazonSupply sells many identical products at a discount, Citi added. (…)
via AmazonSupply Could Hammer Grainger, Fastenal, Other Industrial Parts Suppliers – Investors.com.