Wednesday, November 11, 2015

Amazon Physical Store

In the recent Wall Street Journal (WSF), Inc. plans to open a store in the middle of New York City.

Itz the first brick-and-mortar outlet in its 20-year history and an experiment to provide the type of face-to-face experience found at traditional retailers.  Physical store is contradictory strategy of online Amazon store.

Operating stores also carries risks. Until now, Amazon largely has avoided some costs associated with retailing, including leases, paying employees and managing inventory in hundreds of stores. Those expenses could imperil the company’s already thin profit margins.

If it is successful, however, the New York location could presage a roll-out to other U.S. cities, according to the people familiar with the company’s thinking.

Amazon took some inspiration from a trial by the U.K.’s Home Retail Group PLC, allowing customers to order eBay goods online and pick them up in its Argos stores. By year’s end Argos expects to provide the service at 650 stores from 65,000 eBay sellers.

Other primarily online retailers have opened physical storefronts, including clothier Bonobos Inc., eyeglasses purveyor Warby Parker, and subscription beauty-products service Birchbox.

One philosophy is striking in my mind.  Life is a circle, which will repeat/rotate the trends.

1 comment:

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