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Does it make sense for Amazon to buy Kohl's?

It’s a highly unlikely proposition according to Hedgeye Retail analyst Brian McGough. In fact, he thinks Amazon would have to be crazy to buy the department store chain.

“Amazon buys tech, talent and knowledge. They do not buy square footage,” McGough explains in the clip above.

Among several reasons McGough lays out, he says, “The price for buying Kohl’s is egregious right now. If you want to buy it, you’re paying $15 million in enterprise value per store, which is more than five times the cost to actually build it.”

Watch the full clip above for more.

Would Amazon Ever Buy Kohl's? - real time alerts