HFN – Amazon’s recent news about opening more bookstores will help it reduce shipping costs, particularly last-mile delivery issues, and will create more ways for consumers to interact with the brand, according to retail analysts.
The retail giant has five more physical bookstores slated to open in New York, Chicago, Paramus, N.J., Dedham, Mass., and Lynnfield, Mass. During the last half of 2016, Amazon opened bookstores in San Diego and Portland, Ore. Its first store opened in Seattle in November 2015.
While Amazon already has a wide distribution network, the bookstores provide another way for customers to get packages, and could increase impulse buys in the stores, said David Naumann, vice president of marketing at Boston Retail Partners. A large segment of consumers enjoy “the theater of shopping,” Naumann said, noting Barnes & Noble’s new format that features a restaurant in the center of the store to encourage consumers to spend hours there. “It’s an opportunity to make it a destination.” Physical stores help “consumers develop personal relationships with the brand.”
The reality is that 90 to 92 percent of sales happen in physical stores, Naumann said. “Amazon realizes the importance of physical stores.”
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