Amazon Expands Physical Presence With 4-star In Massachusetts
Zacks Investment Research | Oct 02, 2019 11:03PM ET
Amazon (NASDAQ:AMZN) is making every effort to strengthen position in the retail sector on the back of its growing physical presence.
The inauguration of Amazon 4-star store in Natick, MA, the first of its kind in the state, is a testament to the same. Notably, the store is located at Natick Mall.
The store will sell various products like kitchen appliances and other items, home stuffs, toys, books, devices, consumer electronics and games. The store will also stock camping gear products.
Notably, 4-star stores only stock four-star or beyond rated products of the abovementioned categories utilizing the huge customer shopping data from Amazon’s e-commerce platform.
Additionally, the store will segregate products into four categories — Trending Around Boston, Most-Wished-For Books on Amazon.com, Tailgating Essentials and Picks from Amazon's Top 100 Toys.
These endeavors will aid the company in gaining further traction across the core retail sector.
Benefits of the Move
The latest physical store will help Amazon reach customers who are hesitant to shop online and still prefer to do shopping the traditional way.
Further, it will aid the company in delivering enhanced shopping experience by selling quality and best-rated products. Further, the shoppers will be able to check the products in person before buying them.
Additionally, there are digital price tags for each product, especially for Prime shoppers. This allows the Prime members to pay the online discounted price for their purchases at the store.
With the aid of these factors, the company will be able to attract shoppers to its new store consequently expanding offline customer base. Moreover, the opening of the new 4-star store is likely to strengthen the Prime subscriber base which will not only boost Amazon’s offline sales but also online, due to customer friendly offers and fast delivery services.
Consequently, this will aid the company’s top line.
Expanding Physical Presence
Amazon is leaving no stone unturned to expand 4-star stores across the United States. Apart from the latest move, the company recently announced the opening of such store in in Dallas, TX.
Moreover, Amazon 4-star store in Natick marks the fifth one of its kind in the United States.
Further, this store marks the third physical store of Amazon in Massachusetts as it already has two Amazon Books stores in Dedham and Lynnfield.
Additionally, the company has recently rolled out its second Amazon Go in New York, which is in sync with its aim to take the number of its cashierless stores to a record of 3,000 stores by 2021.
Further, the e-commerce giant intends to launch a new chain of grocery stores in a bid to strengthen its presence further in the retail space. The company is planning to spread the new chain across all the major cities of the United States.
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We believe Amazon’s strong endeavors to bolster physical presence in the retail space are providing it with a competitive edge against the local stores as well as big retailers like Walmart (NYSE:WMT) , Target (NYSE:TGT) and The Kroger (NYSE:KR) .
Currently, Amazon carries a Zacks Rank #3 (Hold). You can see Zacks Investment Research
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