Amazon To Open New York Retail Store
...by Amazon to connect with customers in the physical world. Amazon has built its business on competitive pricing and fast shipping. Until now, though, it couldn’t compete with the immediacy of a traditional store.
Amazon’s space at 7 West 34th Street, across from the Empire State Building in Midtown, would function as a mini-warehouse, with limited inventory for same-day delivery within New York, product returns and exchanges, and pickups of online orders. A customer could, for example, order a pan in the morning and pick it up that evening in time to use for dinner.
Opening a physical location is “about marketing the Amazon brand,” according Matt Nemer, a Wells Fargo analyst. “Same-day delivery, ordering online and picking up in store are ideas that are really catching on. Amazon needs to be at the center of that.”
Amazon also may consider using the space to showcase inventory, particularly its devices like the Kindle e-readers, Fire smartphone, or Fire TV set-top box, according to people familiar with the company’s thinking.
Operating stores also carries risks. Until now, Amazon has largely avoided some costs associated with retailing, including leases, paying store employees, and managing inventory in hundreds of stores. Those expenses could imperil the company’s already thin profit margins.
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