Surprise! Amazon Not Opening Stores

So Amazon.com isn’t verifying rumors that the e-tailer plans to open stores in London. Apparently the plan was for the company to open “click and collect” locations where customers could pick up items they order online.

If Amazon were going to open stores, now would probably be the right time, given the current commercial real estate market. But London seems like a pretty expensive place to test out what sounds like a privately owned post office.

Besides, it looks like competitor Sears is already the first in line with this idea with its crazy MyGofer concept. What would an Amazon store look like anyway?

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5 Responses to “Surprise! Amazon Not Opening Stores”


  1. 1 Alex December 7, 2009 at 9:49 am

    isnt this what those catalog stores like “BEST” and “Service Merchandise” did – they had a floor with all the displays, and then a back area with all the items – so isnt that the same concept? Amazon has its price structure because its warehouses are in cheap areas and has little costs associated with them – how would it work if you increase the fixed cost component? well prices have to go up or margins decrease – and margins are already thin at Amazon. I say they should stick with their current business model, its working pretty well.

  2. 2 James December 7, 2009 at 9:59 am

    Do retailers do this stuff just to amuse us with their nutty ideas? Why would anyone want to pick up something they ordered online when it will land on their front porch all by itself? An Amazon “store” runs contrary to their whole concept and it would seem to violate their contract wioth their customers, and again I don’t see the point unless you are in an area with a very low population of computer users. Sears is apparently looking at opening small local stores using a franchising concept of some sort, they contacted me about this but we never got very far in the conversation, it ended when we got around to my income expectations! My guess is they were looking for a franchisee willing to own and operate a store for the same compensation that they would typically pay a store manager.
    Bookstores are struggling because of Amazon, why would they open stores and deal with the extra cost of a sticks and bricks presence? I’d spend the money on a better web page and more advertising.

  3. 3 James December 7, 2009 at 10:05 am

    Ian,
    I forgot to ask, where is the Counter Culture bloggers holiday party going to be held this year? I need to work it into my busy schedule. Is the event open bar or BYO?? Should I bring a gift for a boy or a girl?
    Thanks, I know we are all looking forward to it.

  4. 4 franz December 7, 2009 at 2:57 pm

    Anuther intersting pos from Ians. I suggest a Ebay store! That way you culd buy and sell all of your auctionswares.And we could cater to young and old alikes but the thing is very problematic in several way: One: What do you sell? Any ol’ piece of cragp you find in the streek? Two: What about religious items and the whatnot? For example, I have ofttimes seen many “skulcaps” thrown out after Barmitazvahs. Is it illegal to sels them? And is is possible that yo may annoy someone if you does? And THREE: Can you sell high qualit crap along with low qualit crap at the same time?

  5. 5 Michael Romelotti December 7, 2009 at 5:17 pm

    Alex and James are both correct; however, I think they both are missing a key factor in AMAZON”S “Bricks and Mortars” thinking: Upon retrieving their on-line
    purchase(s), one would have to get out of their mode of transport and walk into a merchandised store, wherein, the e-tailer could expose the consumer to a limited, edited assortment of more ever-popular goods. AMAZON could stock brand names and get the manufacturer to cover some of it’s Brick & Mortar costs, especially in rural regions; additionally, thes locations do not neccesarily require the corner of “Main & Main”. These stores do not need to take on Godzilla like features; they could open ln less than 10,000 sq. ft. and test the concept during the 2010 sasonal holiday seasons, to determine consumer response for permanence. Labor would be an issue, but perhaps it could be done with Licensee’s, under a Licensing Agreement, (which is totally different than a Franchise Agreement), thereby spreading and/or reducing the labor risk.


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