Why Amazon Is Opening More Brick-and-Mortar Bookstores

March 8, 2017 by Paul Ausick

The company often credited with fundamentally disrupting the book-selling business is taking a step back in time. Amazon.com Inc. (NASDAQ: AMZN) is planning to open its 10th brick-and-mortar bookstore later this year in Bellevue, Washington.

While it’s highly unlikely that Amazon is going to open hundreds of such stores, it is a reasonable question to ask why the company is opening any at all.

One explanation that appears to be especially sensible is that the stores are a showroom for Amazon’s growing number of hardware devices. Not sure if you want to purchase an Amazon Echo? Here’s a place where you can go and kick the tires. Been wondering if a Kindle or a Fire tablet is the product for you? Go on in and check them out.

It’s kind of a 180-degree turn from the shopping experience called “showrooming,” where a customer visits a retail store to test a product and then orders either from a mobile device or later from a home PC. Maybe Amazon isn’t satisfied with having disrupted just the book-selling business and has now cast its eye on retailers in general.

The company’s chief financial officer had this to say on last month’s conference call:

We think the bookstores, for instance, are a really great way for customers to engage with our devices and see them, touch them, play with them and become fans. So we see a lot of value in that as well.

A report at Recode also noted that the stores function as an indirect showcase for Amazon Prime, the $99-a-year membership program that includes free two-day shipping and a plethora of additional benefits like streaming video.

Amazon may even expand the walk-out technology the company has introduced in its Amazon Go convenience stores. That seems like a slam dunk option to us.

Amazon opened its first brick-and-mortar bookstore in late 2015.

Take This Retirement Quiz To Get Matched With An Advisor Now (Sponsored)

Are you ready for retirement? Planning for retirement can be overwhelming, that’s why it could be a good idea to speak to a fiduciary financial advisor about your goals today.

Start by taking this retirement quiz right here from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes. Smart Asset is now matching over 50,000 people a month.

Click here now to get started.