So this happened: Wall Street Journal says Amazon is opening its first physical store.
The Amazon store is set to open this holiday season at 7 W. 34th Street in Manhattan, across the street from the Empire State Building and down the street from the iconic Macy’s in Herald Square.
What we know is that the Amazon store has two loading docks, and a tremendous amount of foot traffic. It’s speculated that Amazon will use the store as a same-day delivery hub, and to process returns. Both will, in theory, make life simpler for those customers who work or live in Manhattan.
What we don’t know is what Amazon plans to sell out of its New York City brick-and-mortar storefront. We also do not know if this is a temporary (pop-up) location, or a permanent one. In the past, Amazon did open some Kindle-branded pop-up stores in U.S. shopping malls.
So what can we make of Amazon’s non-announcement of a brick-and-mortar launch?
- We can look at it as a test – to see how Amazon can fare as an omnichannel retailer… even if only select items (such as Kindles) are available in the store.
- Or to see if Amazon needs walk-in customer service centers in its distribution centers, which, in theory, could save it some money on reverse logistics.
- Or it could simply be Amazon’s way of testing same-day delivery in the very-densely populated borough of Manhattan.
A test like this is pretty interesting. Though we know same-day delivery is going to be a more-popular item in cities than in the suburbs. But who’s to say Amazon couldn’t further its omnichannel mission with a shopping mall presence?
The traditional suburban shopping mall is dying, and is looking to re-invent itself as a destination. Many also have vacant department store space. Why not lease that sort of space as hybrid customer service center/distribution center and expedite suburban same-day or two-day delivery in the process?