Amazon to begin retail experiment in NY, SF?


NEW AMAZON LOCATIONS CONFIRMED

Yes, it’s true. Amazon is opening up brick and mortar locations. It’s heading right to the heart of San Francisco with another location slated for New York. According to those who are familiar with the deal, the SF store will be coming about in the next week or so. The actual date has been scheduled for Oct. 22nd. As we all know, dates change all the time, so do situations. The earliest, though, is slated for the 22nd.

WHY THE NEW STORE AND LOCATION

I’ll give you one word. Holidays. The holidays are coming and Amazon officials want to capitalize on this in a big way. Another reason things are moving very quickly, new merchandise. There is the Fire phone and kindle looking to be promoted. There is also Fire TV. There are new gadgets and merchandise just waiting for a show room. There is always the online option, but Amazon wants their customers to have another option to likely offer capabilities that some of it’s hybrid online brick & mortar competitors can.

THE COMPETITION

Brick and mortar stores will give them the ability to compete with Best Buy, Staples, Walmart, and Sears who are beginning to offer integrated retail options which allow people to order online and pick up in store or visa versa for merchandise not available in store. Amazon wants to “cash in” before the other places get the chance.  Things are moving slow in the integrated retail world and Amazon can disrupt things if they act quickly. Which is why they are aiming for an Oct. 22nd opening. It’s also why they are opening up a physical store. Whether these are merely popup tests or the start of something far more ambitious we will have to wait and see.

Only time will tell whether this venture is really going to take off or not and what Amazon has in store for the brick and mortar world.
THE WAR BETWEEN PHYSICAL STORES AND ONLINE SHOPPING

There has always been a war between the two. It gets even more intense around the holidays. It’s no surprise that Amazon wants to be top dog. They are already showing signs of moving in the direction. Retailers like Walmart, and Sears are coming in to collision with Amazon with new initiatives like same day pickup in stores.

Online and offline have always been in competition with one another. You want to have the best of both worlds. However, there is such a thing as overkill. Could Amazon be heading in that way? Maybe, maybe not. Amazon already has one of the biggest profit margins for sales around. Over the next few months will have to watch and see what Amazon has in store for brick & mortar retail.

Amazon is a company famous for disruption and you would have to bet they have something unique in mind beyond a showroom for Kindles, Fire Phones, and Fire TVs.

We’ll have to wait and see.

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