Sam Oliver
Amazon's growing competition with Apple will soon expand to the retail space, as the online storefront reportedly plans to go brick-and-mortar this fall with its first-ever physical store, set to be built in across from the Empire State Building in time for the holiday shopping season.
The online retailer's midtown Manhattan location was revealed on Thursday by The Wall Street Journal, citing unnamed people familiar with Amazon's plans. The anticipated Amazon Store is apparently on track to open in time for the holidays at 7 West 34th St, located inside a 12-story building.
The location will reportedly have limited inventory and will serve as a "mini-warehouse" for the company. In addition to same-day deliver, the Amazon Store will also reportedly allow New Yorkers to return and exchange products, or pick up an order they placed online.
Amazon is also said to be considering use of the space to showcase its own first-party hardware, including the Kindle line of e-readers, Kindle Fire touchscreen tablets, the Fire TV set-top box, and its new — Â and apparently struggling — Â Fire Phone.
It's in marketing and selling its own products that Amazon will find itself in direct competition with Apple, which currently has five hugely popular and successful locations in Manhattan: Fifth Avenue, West 14th Street, the Upper West Side, SoHo, and inside Grand Central Terminal.
Apple doesn't exclusively offer its own products either, and sells a variety of accessories, cases and other items that tie into its ecosystem of iOS and Mac devices. But the iPhone maker doesn't offer retail-to-door same-day delivery, instead shipping from its online storefront where the fastest possible turnaround is next-day delivery.
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26 Comments
Friends and I have talked about this happening for years. But as soon as Amazon does this they lose many of the advantages of being a virtual store. I can see clearly why they are doing it as they continue to be a not profitable company. At some point they will need to, you know, make some money. But a physical store presence would seem to wipe out any cost structure advantages they have as they now get the cost of a store and employees and security and loss prevention ETC. And as a brand does anyone look to Amazon as quality in any way? It will be interesting to see what happens.
Is it just me or does this seem like a step backwards?
When I think Apple competitors, Amazon is one of the last companies that comes to mind. But it's a free country and they can throw their money into the abyss if they so please by trying to compete. Their kindles are popular, but only for reading books. I dont know anybody that buys an iPad just to use it as a book reader, so I don't think the kindle is stealing any of that market from Apple. And anybody who buys a kindle fire are the types of people that choose Wal mart over Macy's and would not even be in the market for Apple products. Again, no direct threat.
I don't imagine Amazon Prime will cover the same day delivery option so I wonder how many will take advantage of that (as compared to two day). Maybe in an emergency, but I don't foresee many willing to do that on a routine basis. I guess if you get enough people doing it (routinely or not), it may end up being worthwhile.
Not sure how many people will actually visit this location. I don't foresee many caring to go to the store to checkout their first party items. Why not just do as you do now and get it delivered, check it out in your own environment, return it if you don't want it? Especially in terms of traveling around NYC (traffic, etc). Blah ... that's why I don't live in a city to begin with, because I hate all that :)
Could be a place to:
1. Return items - Amazon could stipulate if item is qualified to be returned at B & M location
2. Self serve on line access for customer to browse & shop - BUT secure the on line access to the Amazon site ONLY or you'll have trolls looking for porn, etc as they do in the public library's.
3. Q & A opportunities for customers.
4. Merchandise displays to the very minimum - secure & uncluttered.
5. Sell Amazon gift cards - holidays coming up.