I think they're crazy to do this...we had a retail store for the last 18 years here in Hawaii, and we just closed it because, as Work4Turk says, Brick and Mortar is dying. This last year our lease felt like a ball and chain around our necks! We are so relieved to be done with retail and all of the hassle that goes with it. Again, I think Amazon is crazy to do this. Just my opinion.
Our apple store is the busiest store in the entire mall, literally full as if it's Christmas year-round. If Amazon can do that, they're golden.
"Wear first a condom on your tongue in order to contain the orgasm of your ignorance!"
Disclaimer: The opinions expressed in the above post are my own and do not reflect the opinions or policies of Amazon.com, Inc.
If they open a store in one of the malls near me, I think I might go apply for a position! If they want to be great like the Apple stores then I'll get on board...
From the Register
http://www.theregister.co.uk/2012/02...line_premises/
"Apple has a high-margin business that is strengthened by the tangible allure of its products. None of these other companies can boast the same, though Microsoft comes closest. Employing a cost-heavy offline model to peddle low-priced online goods seems like a match made in profitability hell. ®" (from the Register article)
That's exactly it...Apple has the high margins; its cost of goods is so low it can reap incredible profits. Plus it has its product allure, which attracts the crowds. Amazon has high margins on its Kindle groups but is that enough? And how attractive is the Kindle product line compared to the Apple product line?
I guess time will tell!
I must have fallen asleep watching the news the other night, because I totally had a dream about shopping at the "Amazon store" and telling people about it and when they acted confused I was like "Oh, you don't have one yet?".
Back on topic, I agree that if they can stock enough items with a high enough profit margin, I can see them doing really well. I grew up in the "internet culture"... I've always ordered online rather than going to the store. But, my Dad, aunts, uncles... even my sister, don't do a lot of buying online. To be successful, I think they need to integrate the online ordering system into the store though. So if a customer comes in looking for a specific product that isn't in the store the sales rep can pull them over to the computer, show them the product and do the whole sales pitch and get them to order online while in the store (I did holiday work at Sears last year and they're really pushing this).
The other product that Amazon could be looking to pitch in their stores is their books division. Just last week Barnes and Nobles announced they would refuse to stock Amazon's books in their stores. Brick and mortar presence would strengthen that brand.
First of all Amazon doesn't have big margins on what they sell. On physical goods it is believed to be a 4% margin while Apple's is believed to be 40%. The Kindles are rumored to be sold at a slightly under cost. A couple Amazon stores might be opened as marketing tools but to open chain of them would likely drive Amazon under.
What new technology does is create new opportunities to do a job that customers want done.
In some ways, this article will always be relevant when talking about Apple's success; please substitute android OS (Kindle Fire) for DOS/Windows
http://cs.calvin.edu/documents/christian/ecosessay.php
Kindle Fire is just one android-base tablet among many; as the kindle is just one e-ink reader among many too.
I don't think it would make a lot of sense for Amazon to open a brick and mortar store.
In relation to Apple, they are really in the business of selling content (like books) not hardware (just a device to get the books in your hands).
I think we sometimes forget that Amazon is primarily a book store!
True...although they are the best out there to get CDs and other forms of music, at least in my opinion.
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