October 20th, 2014
Categories: Media, Retail, Uncategorized
It’s too early to predict what the success of Amazon’s first store will be—if it actually happens–as we don’t yet know precisely what the New York City venue will offer. Amazon has gone in this direction before and changed its mind.
Nevertheless, Greg Bensinger and Keiko Morris’s article, “Amazon to Open First Brick-and-Mortar Site The New York City Location to Handle Same-Day-Delivery Inventory, Product Returns,” in The Wall Street Journal, intrigued me, even though it doesn’t share the full picture because the reporters don’t know either.
They wrote about the 34th Street off 5th Avenue future venture: “The Manhattan location is meant primarily to be a place for customers to pick up orders they’ve made online, but will also serve as a distribution center for couriers and likely one day will feature Amazon devices like Kindle e-readers, Fire smartphones and Fire TV set-top boxes, according to people familiar with the company’s thinking.” Who these people? Are they are the same throughout? Bensinger/Morris repeated this phrase many times.
The article doesn’t mention whether customers will see more product than what you’d see at a Verizon or T-Mobile outlet. To me, along with great merchandising, seeing great stuff is the essential part of visiting a store. The reporters wrote that the “flagship store, would mark an attempt by Amazon to connect with customers in the physical world.” But picking up a box or getting it to my office or apartment the same day I order it doesn’t count as “connecting with me.”
The reporters note the popularity of retailers such as Wal*Mart and Macy’s [down the street from where this store would be] who take internet orders that customers pick up with the obvious benefit of potentially making additional sales. The customer, already committed to a purchase that is low in labor costs–nobody has to restock a shelf—may just buy more. But if there’s nothing much to see at Amazon’s 34th Street location, there goes that advantage.
I’ve lived for years in NYC and in upstate New York. Pickups in my car at a Poughkeepsie Mall are no-brainers. NYC is a different matter. There are some with limos and drivers, but if you count on getting a cab to drag home heavy things from midtown, depending on time of day you might be waiting a long time.
On the other hand, there are thousands who couldn’t take advantage of delivery because they live in apartments without either doormen or friendly neighbors who work at home and will accept packages. Some work for companies that forbid employees to ship personal items to the office.
Should reporters wait until they get the skinny from a source they can quote rather than going with information from many “people familiar with the company’s thinking?” What do you think of people who leak proprietary information to the press?
If you go out of your way to visit a retailer to pick up a package do you want to see other merchandise while you’re at it? Isn’t one of the benefits of buying online the delivery factor–why would a company need a half-baked retail space?