Amazon Brick-and-Mortar Retail

Amazon is about to do something no one thought it would ever do. With the holiday season coming in hot, the online retail giant wants to open a traditional brick-and-mortar store. Further plans include creating a brand store for Amazon Devices, taking on Samsung and Apple alike.

As reported by the Wall Street Journal, Amazon is eyeing an opportunity to open its first ever store, which is something that the company failed to do in the 20 years that it has been present on the retail market. And, what better place to open it than in the heart of New York City. The store will be based in a 12-story building owned by Vornado Realty Trust.
The store is set to open just in time for Christmas shopping. It will be located on 7 West 34th Street, just across from the iconic Empire State Building. Previously, the company was thinking about opening a store in Seattle where its headquarters are located. The idea didn’t pan out because of insufficient foot traffic in the area – something that Amazon won’t have to worry about in NYC.
People familiar with the matter said that the store will serve as a small warehouse for products. There are two docking stations in the back of the store where goods could be delivered. Other features will include same-day delivery across NYC, as well as the ability pickup and return ordered products in store. Adding a pickup option in store will have positive effects on sales, since at the moment it’s one of the most popular forms of order fulfillment.
Here are 3 reasons why Amazon is going brick-and-mortar:

1. Brick-and-mortar is still going strong

Although Amazon has been building its empire on eCommerce, it now plans to go back to a more traditional approach. In-store sales are still very popular in the US, and this will probably not change very soon. American consumer still like to go to the store because they trust this form of shopping more and want to pick out their products. Other companies like fashion retailer Bonobos also recently opened a brick-and-mortar store. The retailer claims that clients buying in store purchase twice as much compared to the online shopper.

2. Going omnichannel

Adding a brick-and-mortar channel will help Amazon become an omnichannel giant. Omnichannel is becoming more and more popular among major retailers and lets them offer a seamless integration of all shopping channels. Amazon already has plans for the store that include adding a distribution center for couriers driving around New York, as well as creating an Amazon brand store. The store would feature Amazon devices including the Kindle e-book readers, Fire smartphones, tablets and TV boxes, turning the store into a showroom filled with gadgets.

3. Mimicking Apple’s success

Amazon has always shown that it wants to become a technology giant, especially with the drone deliveries and smart gadgets that it has been working on. That’s why the future store’s attention will focus on Amazon devices, making it a competitor for Apple and Samsung branded retail stores. Additionally, the company’s Fire line hasn’t been doing as well as expected, and a brand store would help Amazon make their devices more desirable – just like Apple did with its retail store.
This article originally appeared on Evigo.

Echidna Team
Echidna Team
Echidna is an eCommerce agency based in Minneapolis. We drive eCommerce transformation, create inspired customer experiences, enable eCommerce technologies, and help retailers attract and convert customers. Feel free to email us with any questions related to eCommerce design, technology, or marketing.