Amazon Inc. tills may soon start ringing on Fifth Avenue, NY

Manhattan

The Manhattan’s mini-warehouse type space will be home to inventory for same-day delivery, product returns and pickups in New York.

Fifth Avenue in Manhattan where the tills never stop ringing and where customer is the ultimate king is now welcoming a Martian in high spirits.

America’s hugely successful e-tailer Amazon Inc., is now taking the conventional route by opening its first brick-and-mortar store in 34th Street Manhattan, New York. Quite an unusual way to spread some early Christmas cheer! The story was first reported by the Wall Street Journal citing anonymous sources, familiar with the plan.

The Manhattan’s mini-warehouse type space will be home to inventory for same-day delivery, for product returns as well as pickups in New York. The Seattle-based company may even use the space to showcase its product line such as Kindle e-readers as well as tablets, in addition to the underperforming Fire smartphone and Fire TV set-top box. Amazon’s same-day delivery service will be offered in 12 cities, including New York, Los Angeles, Atlanta and Phoenix. In short, Amazon is just in time for holiday shopping!

“It’s about marketing the Amazon brand,” said Matt Nemer, a Wells Fargo analyst. “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.”

Amazon has disrupted the world of e-commerce by offering products at a much lower cost than numerous brick-and-mortar stores. A pioneer in bringing forth the comparison app tool that introduced the trend of “showroom buying” where smart buyers would visit physical stores to see the product and then head home and buy them online to save money. A physical store will also facilitate an opportunity to accumulate data on real-time consumer buying patterns.

Amazon may also benefit from increased sales. According to Andy Dunn, CEO of New York-based clothing store Bonobos, consumers are more likely to spend twice as much at a physical store in comparison to online buyers.

Richard Doherty, an analyst at Envisioneering Group, says Amazon offering same-day delivery could turn out to be “a tremendous uptick for tourists” and create “tremendous volume,” Doherty says.

Amazon is yet to make any official announcement on it opening its first physical store in Manhattan.

Tim Bajarin, an analyst at Creative Strategies, says there are a few retailers who sell Kindles such as Best Buy and Wal-Mart. By opening a physical retail store, Amazon will be able to present its products in front of buyers. “There’s still a segment of the population that’s touchy-feely,” says Bajarin. “They want to see the product up close, and have it shown to them.” He further added that by opening in New York during the holiday season, Amazon will “get high traffic, and the kind of feedback it needs to see if it wants to expand.”

As indicated by the Wall Street Journal, Amazon will open the storefront near the Empire State Building on 7 West 34th Street, and a block east from Herald Square, to take on Macy’s and Herald’s other retailers.

Anna Domanska
Anna Domanska is an Industry Leaders Magazine author possessing wide-range of knowledge for Business News. She is an avid reader and writer of Business and CEO Magazines and a rigorous follower of Business Leaders.

Recent Posts

PepsiCo relinquishes control of Tropicana for $3.3 billion

PepsiCo relinquishes control of Tropicana for $3.3 billion

PepsiCo will sell Tropicana and other juice brands to a private equity firm in exchange for pre-tax proceeds of 3.3 billion dollars.
12 hours ago
Sanofi bets big on mRNA future with Translate Bio acquisition offer

Sanofi bets big on mRNA future with Translate Bio acquisition offer

Sanofi’s CEO Paul Hudson is dead serious about mRNA technology and capabilities with a $3.2 billion acquisition offer to Translate Bio.
13 hours ago
Top 6 Energy Dividend Stocks to include in your portfolio

Top 6 Energy Dividend Stocks to include in your portfolio

The entire energy sector yield hovers around 4%, according to the Energy Select Sector SPDR exchange-traded fund.
1 day ago
Monte dei Paschi performance below par in EU banks stress test

Monte dei Paschi performance below par in EU banks stress test

The depletion of capital at each bank under the test’s harshest scenario will be closely scrutinised, and could potentially lead to hostile takeovers
3 days ago
Nokia to launch T20 tablet with 10.36 inch display

Nokia to launch T20 tablet with 10.36 inch display

The Nokia T20 will sport a 10.36-inch display and will have 4 GB RAM along with 64 gigs of native storage.
5 days ago
Ford sees surprise Q2 profit despite chip shortage and manufacturing hassles

Ford sees surprise Q2 profit despite chip shortage and manufacturing hassles

“The business is ‘spring loaded’ for a rebound when semiconductor supplies stabilize and more closely match demand.”
5 days ago