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Tuesday, November 4, 2014

Bobby Jain Credit Suisse: Will Amazon Benefit From Physical Stores?

By Jennifer Marie Anderson


Everyone knows about Amazon and the fact that it is, first and foremost, an online marketplace. The well-known seller of various pieces of merchandise, the popular Kindle models included, will seemingly take its shot at becoming a name within brick-and-mortar retail as well. It's a lofty endeavor, as I am sure Bobby Jain Credit Suisse will be able to attest to. With that said, it's an intriguing business move that, in my view, deserves a tremendous amount of attention.

Amazon made the announcement that it will start to bring "pop-up" store locations to cities in the California area. For those who'd like more details, these stores will be, more or less, the same as kiosks which will be able to present items like the popular Kindle Fire. However, consumers who take notice of these stores will actually be able to purchase these items right then and there. It's a strong opportunity, not only for consumers but for Amazon as a whole.

It's been said that the first store, of this kind, will spring up at a mall known as the Westfield San Francisco Centre. This is a great move, in my view, because it can serve as the proving ground for this particular idea. A mall is always going to be bustling with shoppers, each of them with the desire to not only shop with items on the mind but potentially make impulse purchases as well. To say that a mall will work wonders should probably go without saying.

I am of the opinion that, in time, other kiosks can start to sprout in other parts of the world. Of course, this can only be done if there is success to be had, which is a point that Bobby Jain Credit Suisse can draw attention to. Not only has Amazon been able to prove itself as a name in retail but it goes without saying that many of its consumers have, at the very least, envisioned what a chain of Amazon brick-and-mortar stores could be. As names like Robert Jain may agree with, a business move like this is a step in the right direction.

Will a process like this help or harm Amazon in the long term? It's hard to say, especially when you consider that this idea has not even come to fruition yet. Nonetheless, I believe that Amazon will be able to bring a level of success to a more conventional retail front; whether or not this will match up to its success online remains to be seen. Nonetheless, it's a strong topic to stay focused on, whether you are a frequent buyer of Amazon products or not.




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