Verlin P. Youd

Rumor Mill: The Amazon Store is Coming

February 9, 2012

FROM RETAILWIRE:
A report last weekend by Good EReader said that Amazon, similar to its Quidsi division, was tinkering with the idea of opening a small store in Seattle to show off items such as its various Kindle models and a widely anticipated Android smartphone line. Do you think it makes sense for Amazon to open physical stores?      [more...]

It is no secret in retail that it is critical to stay connected to your customers. Likewise, every successful retailer knows that today's customers -- and I would argue yesterday's as well -- seldom if ever limit themselves to one channel when purchasing a product or service. Opening a physical store, even if not profitable on a standalone basis, will give Amazon incremental customer intelligence that can be used to continue to drive their value proposition.

A physical store will give Amazon a chance to determine if there are customer segments that they aren't serving with their web-only presence, a feel for how customers physically interact with their products during the decision process, and will allow them to test things that could apply to a web-only business but are easier to test and evaluate in a physical setting.

Finally, if Amazon wishes to remain relevant and continue to grow, they need to have their fingers on the pulse of physical store retailing, especially as a majority of their competition has both physical and online presence and isn't standing still either.