Amazon, the online retail behemoth will reportedly be taking on Macy’s and other retailers in the Big Apple with a physical store during the holidays, according to people who said they were familiar with the situation.
The location in Manhattan would act as a mini-warehouse for delivery the same day across New York, pickups of orders online and product returns according to the anonymous report.
Amazon shook up the world of retail by offering prices that were much lower than in the traditional brick-and-mortar locations. The company also offers comparison app tool bringing forth the trend now known as showroom buying – people going to brick and mortar stores to look at an item and then back at home ordering it from an online location to save money.
The e-commerce giant now has its own line of tech products that include a number of tablets and e-readers, a smartphone and a set-top box for television. With a standalone store the company could put its goods before the eyes of millions and tout its expanding line of goods offering same-day delivery.
That service is now available in a dozen cities including Los Angeles New York, Phoenix and Atlanta.
An industry analyst said that New York attracts a number of tourists from foreign countries who shop back home on Amazon, but find a number of products only sold in the U.S.
A store that offers same-day delivery might be a huge uptick for foreigner visitors and generate huge volume.
Amazon would not comment and a spokesperson only said there were no announcements regarding a Manhattan location.
Amazon likely would devote a great deal of space in the store to its tablets and e-readers, which have done well. Its Fire set top TV box has underperformed. The smartphone started in July at $199 but was discounted to $1 with a contract of two-years included, only two months later.
One analyst said that very few retailers sell the Kindle e-reader as well as tablets from Amazon and this will give many other potential buyers an opportunity to see the products.
Get Analysts' Upgrades and Downgrades Daily - Enter your email address below to receive a concise daily summary of analysts' upgrades, downgrades and new coverage with MarketBeat.com's FREE daily email newsletter.