After a whole 20 years operating only as an online retailer, Amazon.com, Inc. (NASDAQ:AMZN) now sets foot into the brick-and-mortar business with the first store to be established in New York City, according to sources on the loop.
Critics have however pointed out extra running costs and huge risks as some of the challenges that the company is likely to face in the new store. Nevertheless, it’s considered that the store will serve as an experiment to weigh whether running a physical store would be appropriate for the company before rolling out other stores in different other cities across the nation and beyond.
A source intimated that Amazon.com, Inc. (NASDAQ:AMZN) has been fumbling with the idea of opening a physical store for many years, and this just became the right time to put the idea into work.
“Same-day delivery, ordering online and picking up in-store are ideas that are really catching on. Amazon needs to be at the center of that,”
Matt Nemer, a Wells Fargo analyst said to Dow Jones.
Many consumers like buying for things from the comfort of their homes, but where the store is nearby, a lot of users like selecting products online, paying, and picking from the local store. This model has been implemented by other retailers such as Wal-Mart, Home Deport, and Macy’s.
Amazon.com, Inc. (NASDAQ:AMZN) is set to open the store ahead of the holiday season. The company has selected Manhattan, which is one of the busiest boroughs in New York. The company looks to tackle the immediacy that has been a challenge for people who need to use stuff almost immediately. While Amazon.com, Inc. (NASDAQ:AMZN) has done well to ensure that its deliveries are fast, it has been facing stiff competition from companies that have both online and brick-and-mortar options.
No information has been received about the size of the space and how well suited it is for the said function.
This article has been written by Victor Ochieng.