According to a report by the WJS, the retailer is planning on opening bookstores all across the country; however this news has not yet been confirmed by the company itself, as yet.
Amazon.com launched its first brick and mortar retail physical bookstore last year; and now it plans to dip deeper into that business and plans to open as many as 400 bookstores all across the United States, according to a report by The Wall Street Journal. The first bookstore was opened back in November 2015 in the retail giant’s hometown, Seattle.
This news was disclosed by the chief executive of mall operator General Growth Properties Inc., Sandeep Mathrani on Tuesday on an earnings call. Mr. Mathrani stated that the retail giant’s plan is to open at least 300 to 400 brick and mortar bookstores, according to his understand; however spokesperson for General Growth Properties as well as Amazon declined to comment on this news.
According to the Wall Street Journal, the executive could have had a talk with the retailer’s real-estate executives who might have disclosed the company’s plans as currently it is still unclear where he got this news from. If the online shopping company decides to go ahead with this plan of opening hundreds of bookstore outlet, there are a number of things it will need to take into consideration.
For starters, Amazon will need to pick specific locations (which would take years for it to decide), then it will need to hire staff for these physical locations, consider leasing deals. Despite the fact that it might become a hassle for the company itself; for the customers it will be a chance to leaf through the books before purchasing them.
The store that the organization initially opened back in November is situated in an outdoor mall where it sells Kindle, Fire devices as well as books. The company stated that it stores over 5,000 books in store while has over millions on its website. The price tag on these books and devices is same as on the website of the company. Additionally, it provides its books at a discounted price in comparison to its competitors.
Speaking of competitors, if Amazon decides to enter this market then it will have to go up against Barnes & Noble Inc. along with Books-A-Million Inc. Presently, Barnes and Noble Inc. operates over 640 stores while Books-A-Million is in 255 locations.
In addition to that, it has started one-hour deliveries in over 20 cities. They have representatives present in different universities in the United States where the students can pick and drop off merchandise and also converse with the representatives. It has revenue of over $107 billion annually; and it has built a strong online presence – furthermore it plans to expand as it has recently announced that its main focus will be on innovation and creativity.
Amazon stock is being traded at a share price of $525.89 indicating a decline of 3.01% from its previous share price. The market capitalization of the retail giant is $262.60 billion and it initially reported earnings per share of $1.24 with a price to earnings ratio of $432.12. During the trading session, the highest point at which the share price was seen at was $556.00 while the lowest point was at $533.19.