Rumours are circulating that the online retailer Amazon are looking to open up shops on the high street. This speculation has been further fuelled by the collapse of major chain borders prompting theories that Amazon are set to take over their outlets. This seems an interesting proposition, but surely would mark a major about turn for the online giant.
First and foremost, Amazon was built on the benefits that the internet could provide to its service. It’s cheaper, it’s efficient and it allows buyers an alternative to the major high street chains. So wouldn’t this move in some way contradict the key aims of an online retailer?
There are aspects of the proposal that do make sense for Amazon to make this transition. Borders, the retail outlet provided a variety of products such as books, games and music and represents prime retail space available that would suit Amazon perfectly. With the current economic climate this is the perfect time to buy up retail space at vastly reduced costs. But all of this is very much dependent on what kind of service Amazon want to provide. What would seem prudent for Amazon is a system similar to that of Argos. A ‘click and pick’ system would no doubt suit their service model; customers would be able to use a similar kind of setup as they do online, yet would be able to pick up their items straight away. Furthermore, there is a great opportunity to provide some much needed competition for Argos.
However, is this really a worthwhile endeavour? Frankly, Amazons delivery service in the UK is very reliable and usually on time. So for purchasing a vast majority of items such as couches or other furniture that requires delivery, there appears no real difference in using a high street outlet. The Guardian blog on this topic suggests that a system of out of town delivery centres would be better suited to the US where there are far greater distances between their hubs. This could provide room for far greater impact and financial gain.
Either way this is still only in a speculative stage at the moment and whether Amazon does take the high street on and how they would set about it remains to be seen.
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