SEATTLE (dpa-AFX) - Online retail giant Amazon.com Inc. (AMZN) is reportedly in talks to buy luxury online fashion retailer Net-a-Porter.
The news of acquisition was first reported by Women's Wear Daily, which said the deal would be completed for about 2 billion euros, indicating the biggest acquisition yet by Amazon. However, Forbes reported that the deal is far from completion and might fall apart.
Although, Amazon has always indicated its interest to expand in high-end fashion retail sector, it has always failed to show its dominance there. However, with the acquisition of Net-a-Porter, Amazon will be able to expand its presence in fashion retailing sector.
CEO Jeff Bezos had told the New York Times in 2012 that Amazon intended to improve its presence in high-fashion retailing sector as the profit margin was much higher for luxury clothes.
Net-a-Porter, which is owned by Swiss company Compagnie Financière Richemont SA, is a high-fashion retailer that operates via a website designed in the style of a magazine. The website claims it gets over 2.5 million hits each month.
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