It was only a matter of time before unnamed sources started buzzing about Amazon diving into the brick-and-mortar scene.
Although Amazon has confirmed it will be opening pop-up kiosks in California during the holiday season, there is still no confirmation that it will, indeed, open a warehouse-type location in New York City. But the RTP team can’t ignore a good conversation! Here’s what they had to say about Amazon’s possible new venture.
Debbie Hauss, Editor-in-Chief: To date, Amazon is the most intimidating competitor for most retailers, in part because the company continues to sell the products people want at the lowest prices – by sacrificing profit. That’s why industry experts like Paula Rosenblum from RSR are speculating that Amazon needs to open stores that will deliver a healthy profit margin on products in order to bring the company into the black. I think shoppers like Amazon for what it is and what it offers currently. It doesn’t have a product-specific brand image that would necessarily warrant store openings. But many other pureplay e-Commerce companies are in the process of opening brick-and-mortar stores, in part to be able to have that one-on-one personal relationship with shoppers they can’t achieve online. Maybe Amazon wants to get more personal with us?
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Alicia Fiorletta, Senior Editor: The timing of this “announcement” is definitely interesting. Retailers are starting to unveil their holiday gift guides and promote their campaigns, slowly but surely, so I can’t help but see this as a ploy to get people talking about Amazon a little bit more than usual. I think it’s an exciting way to show how the brand is progressing, and definitely gives city tourists something to check out, but I still have my questions and concerns. Specifically, I’m wondering how Amazon is onboarding employees for the location. Although it will be more of a warehouse than a store, what if consumers come in and visit? Will employees be more fulfillment savvy or customer-facing focused? This could have a tremendous impact on the experience and could even leave the brand at risk, especially if the employees create a less than cheerful experience.
Rob Fee, Managing Editor: I understand some of the benefits brick-and-mortar offers Amazon – especially as it focuses on selling its own products, such as Kindles and Fire phones, that need increased brand awareness in a highly competitive market. Microsoft tried something similar when it released its Surface tablets, and you can’t argue with Apple’s success in opening its own retail locations. If Amazon wants to showroom its offerings, then I think they could find some success in this format. Additionally, adding same day delivery, pickup and return options certainly will benefit customers who live close to the store. Here’s where I see the problem, when I think of Amazon, I think of a place where I can order pretty much anything I can think of and have it shipped to my home for a decent price. Perhaps the company’s experimental move into brick-and-mortar will start to change my views.
Kim Zimmermann, Managing Editor: It is an interesting experiment, but if they were going to choose a location that was going to operate more as a warehouse than retail space, it seems as if they could have chosen a less expensive location. It will be good for customers in the immediate area, but not sure people will travel that far to return something at the Amazon store rather than ship it back.
Glenn Taylor, Associate Editor: It seems to be too early to give a definitive answer. You look at the brand “Amazon” and assume that whatever plan they have in building a brick-and-mortar store will work, but the fact is, the information they released isn’t substantial enough to show what exactly the store is trying to accomplish. Of course, it is positioned to take advantage of the New York tourist crowd, but the store has a lot to prove in its effectiveness if the company has any plans to expand its brick-and-mortar presence further.
Brian Anderson, Associate Editor: Amazon’s break into the brick-and-mortar scene will have an obvious impact, but whether or not the impact will be positive or negative can only be measured once the store is opened and we see what exactly the company will be offering. It’s stated that the Amazon store will be more like a warehouse than an actual retail outlet, so I’m curious to see how Amazon will handle their one-on-one customer engagement. I prefer to shop online anyways, but knowing that the store will accept returns makes it a bit more appealing.
What do you think about the rumors of Amazon’s NYC location? Share your thoughts in the comments section below!
