The e-commerce giant reported record holiday sales as it gained market share from traditional retailers. Moreover, since operating income at Amazons cloud computing business more than doubled in 2016 from $1.5 billion to $3.1 billion a year earlier, the company has even more financial flexibility to compete against legacy rivals. Macys, the largest department store operator, is a case in point. Cowen estimates that the chain should operate between 550 and 600 locations, well under managements guidance of about 628. That means 153 stores should close versus the 100 Macys has already announced.

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