Amazon doesn't need to offer customers loyalty to convince people to buy from them - they operate on volume and so can afford to pass on the lowest costs to consumers. In addition they have an excellent name for customer service and already have a very strong branding. They pay a minimal amount on advertising (mostly affiliate commission) meaning more low prices for the consumer.
That said, Vet benefits will win many customers, as Amazon doesn't offer vet services. Greencross need to consider these value adds to ensure that customers see a benefit in shopping with them over shopping with a cheaper competitor.
I think part of this stock's decline is that people just don't like to be unsure - we're unsure about what approach Greencross will take to ensure that they will thrive even with Amazon competing with them.
GXL Price at posting:
$5.49 Sentiment: None Disclosure: Not Held
