Amazon is about to open up a brick-and-mortar store in time for the holidays, on the same street as Macy’s in New York to get a share of the holiday traffic. While some analysts worry about retail costs cutting into Amazon’s thin profits, others believe the branding will help.
Back in September, L2 Researcher Mabel McLean spoke in a video about how Amazon and Walmart are competing against each other. Amazon has gone to lengths no retailer has ever gone in customer service; it offers free two-day shipping for Prime members and it started to offer same day shipping to six US cities in August. But Walmart can offer services such as in-store pickup, which Amazon can’t due to its non-existent brick-and-mortar footprint. Walmart has chosen to compete with Amazon on the omnichannel front with Walmart ToGo, which allows consumers to shop online and pick up items without leaving their car in a two to three hour window.
McLean said that companies such as eBay have found there is more demand for click-and-collect offerings than expedited delivery. For that reason, analysts have speculated that Amazon will buy Radio Shack just for access to its 4,000+ retail locations.
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