If the high street is in decline why is Amazon keen on opening shops?

According to a report by Retail Week, Amazon is reportedly eyeing stores which Sainsbury’s and Asda could be forced to give up in their proposed upcoming merger.

It is thought that Sainsbury’s and ASDA could be forced to give up 423 stores in order for their deal to go . Colorado, US, just months after launching the concept in New York City. The concept store sells a range of Amazon’s most popular products, including toys, household goods, games, and kitchenware. Prices will change depending on whether customers are Amazon Prime members or not, Prime members only pay the online prices while non-members pay a premium.

So why exactly would this phenomenally successful online giant want to invest in bricks and mortar, taking on the costs of rent, rates, and taxes that are crippling high street retailers? Having been part of our high street’s demise they are ready to move into the physical spaces left empty.

Was this in Amazon’s master plan for world domination all along? Or I it pure opportunism?

It’s certainly an expensive way of gaining more Prime customers.

Will the great Amazon succeed where many retailers are failing?

Jackie Mulligan founder of www.ShopAppy.com has this to say on the subject…..

“I think Amazon might be seeing pushback against home delivery, over-packaged goods and questions over their treatment of staff in distribution centres. There is a growing preference for small and physical outlets which is why companies like VISA this year focused on the high street.

Whilst more outlets in towns and cities is welcome, we should ensure that the massive power of this supergiant does not overpower the small businesses around it. I am also sure that people aren’t keen on the idea of clone towns where every town would look the same.

Perhaps Amazon will adopt an independent guise as some chains have done to appeal to a growing market of consumers, keen on supporting small and local rather than giant and multinational. With ShopAppy our focus is the social mission of bringing footfall back into high streets and markets and providing that single window for places. If anything has got to change, it is that we realise the value of place and supporting our localities as this is a far more sustainable approach for our communities, our wellbeing and our planet.”

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