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Amazon: Breaking Down Four Myths
There’s no denying that Amazon has changed the face of retail, but there are many misconceptions about how the company actually operates. Many wrongly believe that Amazon makes most of its profits from e-commerce, while others incorrectly view Amazon as the long-tail poster child. Unfortunately, these fallacies are leading many retail companies into making bad strategic business decisions as they try to duplicate Amazon’s success. The following is a breakdown of some Amazon myths along with a few takeaways: -
Luxury department store retailer takes on more debt
Neiman Marcus’ debt burden just got heavier. The luxury retailer will make interest payments over the next six months with new debt to preserve its cash and bank line of credit. Instead of making a current $29 million cash interest payment on $600 million notes due in 2021Neiman Marcus will issue more bonds to holders to cover the 9.5% interest, the Dallas News reported.