Amazon To Open First Physical Store In NYC For Online Order Pick Up, Returns
By Marco La Vecchia, VP Channel Sales, AVG Technologies
Amazon has made several big steps in consumer retail lately, such as testing same-day shipping, integrating a wish list function with Twitter, and now the retailer is tackling a brick and mortar store. On October 9, The Wall Street Journal reported that the e-commerce giant would be launching a new store in New York City. Located in Manhattan, a prime spot for shoppers, the new store will be at 7 West 34th street alongside the famed Macy's flagship store and across from the iconic Empire State Building. It's projected to open in time to meet the demands of the busy holiday shopping season, and will be focused on providing the in-person experience that Amazon has shied away from in the past. Like Amazon Locker, the store will let shoppers pick up online orders, but the Amazon Store will also allow shoppers to return orders, make exchanges, and will function as a small fulfillment center, similar to how Macy's has used some of its stores. According to the Wall Street Journal article, this move has been underway for several years, with Amazon previously considering its headquarters, Seattle, for the store.
While store-level operations come with new challenges for Amazon, such as staffing, rental fees, packaging, day-to-day management, and inventory, the launch is still a good test for the retailer to see how the store will perform. The prime location will help as well, as millions visit the landmark Empire State Building each year and the area features excellent foot traffic. Other retailers such as Macy's and Target have ventured into same-day shipping, and Amazon is smart to adjust its business operations to meet the growing demand for faster shipping and quicker order fulfillment. Numerous brick-and-mortar retailers handle online order returns in store, and Amazon can now feature the service as well. This feature should be well-received by New York City residents, who will be able to circumvent having to return Amazon orders via mail.
Whether Amazon plans to stock its test store with its electronics, such as Kindle and Fire TV hasn't been announced, but sources close to the retailer say it's likely to happen after the store launches. In November 2013, the company launched a “pop up shop” in a San Francisco mall to showcase their Kindle, cases and related accessories; the most recent opened in July 2014 in China. The shops function like kiosks where consumers could have a hands-on demonstration of the retailer's gadgets. Early in 2014, Amazon began testing “Kindle Kiosks,” vending machines were shoppers could purchase the electronics with the same ease as buying a soda. The kiosks were available in malls, airports, and at certain events. Now with the move into a brick and mortar store, Amazon has moved even closer to a full-scale in-store experience. Details regarding the square footage, lease terms, and operation notes aren't available at this time, but will probably be revealed as we move closer into the holiday season.