Amazon Set to Launch Physical Bookstores

Rumour is rife that Amazon is planning on opening a bricks and mortar store in its home town of Seattle. Strange but true, according the web site GoodeReader.com

“Amazon sources close to the situation have told us that the company is planning on rolling out a retail store in Seattle within the next few months. This project is a test to gauge the market and see if a chain of stores would be profitable. They intend on going with the small boutique route with the main emphasis on books from their growing line of Amazon Exclusives and selling their e-readers and tablets”

It seems that Amazon is hoping to time the opening of their first physical store with the launch of their own publishing company in the third quarter of this year, ready for the Christmas peak period.

Another article by the Financial Post suggests that the move may be a way of improving recent poor financial results, but points out that it may be a problem for Amazon’s already embattled situation regarding sales tax in the US

“The company has been fighting the notion of an online sales tax or years and a lack of physical locations is part of the reason Amazon has avoided charging/paying regional sales taxes thus far.

Yet the company reported dismal quarterly earnings last week and analysts expect the downward trend will continue until at least late 2012. So the potential for increased sales and local marketing opportunities offered by a move into physical retail could be an attempt by Amazon to try and offset those losses”

It seems a very strange move; almost as if Amazon is trying to turn the clock back. Just as the rest of the world is starting to embrace digital books, what is the benefit for them or readers? I can’t imagine that their stores would be full of knowledgeable staff (not about books anyway, probably very tech savvy – but is that what a good bookstore is all about?) and hopefully they have learned from the Borders experience that big is not always better.

However, let’s wait and see; there are interesting times ahead. Wonder when they’ll launch in Australia and where?

You can read the GoodeReader and Financial Post articles at:

http://goodereader.com/blog/electronic-readers/amazon-in-the-process-of-launching-a-retail-store

http://business.financialpost.com/2012/02/06/is-amazon-bringing-a-bookstore-to-a-mall-near-you