Cruel Irony? Amazon Opens Up Brick-And-Mortar Bookstore
- Shares of Amazon.com, Inc. (NASDAQ: AMZN) hit a new all-time high of $637.65 on Wednesday as the stock is now higher by more than 100 percent from a year ago.
- In a surprising twist, the e-commerce platform decided to open its first-ever first brick-and-mortar bookstore in Seattle.
- The new store, named Amazon Books, will be stocked using Amazon's vast user data collection.
Amazon is often credited with killing traditional bookstores, so some people may be confused to learn that it just opened a brick-and-mortar bookstore.
Amazon plans on using its vast user data collection to stock its shelves with only the most pertinent and popular books. The company will also stay true to its low price reputation in its new stores.
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According to Wired, Amazon Books is "as much a bookstore as it is a billboard." The publication suggested that Amazon "doesn't need the store to be a success" in order for the company to succeed, rather, "it's better to think of Amazon Books as a giant advertisement."
For the time being, Amazon Books won't double as a warehouse or pickup center. The company also noted it doesn't have any plans to open a second bookstore for the time being.
The concept of Amazon moving beyond cyberspace isn't necessarily a new concept for investors and Wall Street analysts.
When Radio Shack was on the verge of bankruptcy, the investment community debated if Amazon should acquire the struggling retailer. SunTrust Robinson Humphrey's analyst Bob Peck suggested that an acquisition could allow Amazon to showcase its products to consumers before they make a purchase.
Noted retail analyst and TheStreet contributor Brian Sozzi told Benzinga, "Amazon's interest in book stores should be on the radar of Barnes & Noble -- the stores seem streamlined, easy to shop and carry the most relevant titles. In, out and at a good price. Unlikely Amazon starts opening other retail formats, but should they I suspect it will be related to food."
While Amazon's new store only showcases books, investors and analysts will now be paying attention if this marks the beginning of a new era for Amazon.
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