Amazon customers working in Manhattan will soon be able to drop into a brand new Amazon store to collect their online orders and make returns. The West 34th Street store will potentially also hold stock of Amazon’s own products including the Kindle range, set top boxes, and smartphones. Although Amazon has previously trialled pop-up stores this is its first permanent retail outlet and will act as the blueprint for potential roll out to other key US city locations.
Although online has changed consumers expectation of what
shopping should be like, research shows time and time again that we still love
the convenience and customer services that come with buying items in-person.
For the retailer, giving customers in store pick-up services and the option to
buy additional products in a physical location drives footfall and increases
the opportunity for them to see other products they’d also like to buy.
This is further proof that smaller and specialised
retailers wishing to compete and avoid disappearing off the high-street in the
face of such a challenge by the retail giants need to seriously consider how
their offering compares. The final piece of any online retailer’s consumer
offering is to allow a physical location in which shoppers can interact with
the store and pick-up goods in a way convenient for them, for example, through
‘click and collect’.
This is a smart move by Amazon, by enabling customers to
move freely between their physical and online stores and giving customers what
they want in a hassle-free experience, shoppers will have less reason to look
elsewhere this Christmas season.
John Pincott, Managing Director, Europe, Shopatron
“The opening of Amazon’s first
physical store is a great indicator that the high street will never die.
Consumers still, and always will, want a shopping experience where they can
touch, feel and play with products before they purchase – particularly when it
comes to hi-tech or high ticket items.
There are many things that
Amazon gets right online, but a bricks and mortar store is a very different
proposition. An Amazon-like experience needs to be replicated with real product
information, peer reviews and social interaction from knowledgeable staff.
Infectiously enthusiastic assistants who really know their subject and are
passionate about their products are actually very difficult to recreate online.
With many of Amazon’s own
products showcased – such as Kindle e-readers, Fire phones and TVs –
it’s interesting to note that the company will have a limited inventory
for shoppers that want their purchases instantly, or at least on the same day.
The Manhattan location suggests that Amazon is reacting to consumer preferences,
who still want to savour the Christmas shopping experience, rather than
clicking and waiting for postal deliveries.”
Martin Smethurst MD of Retail at Wincor Nixdorf
Phillip Smith, Country Manager, Trusted Shops
comments:
“Amazon’s venture into bricks and mortar
is a bold move. Rolling out such an ambitious project in Manhattan is one
thing, but doing so in other cities is a completely different ball game,
especially for a pure-play. Whether this move has legs, or is simply a
marketing stunt to boost christmas sales is yet to be seen.
But retailers should be under no illusion
that this move is about a store opening. It’s a strategic route into low cost
same-day delivery. The products on display will be marketing tools, used as
upselling opportunities for those collecting their purchases. This will be no
traditional shop.
Getting the right stock in the right place,
at the right time will be Amazon’s biggest challenge. It’s reputation exists
because it’s maintained good customer feedback. Negative responses from
customers at this stage will be unsafe territory.
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