Amazon Considering New Retail Store Initiatives

In a third quarter conference call, Brian Olsavsky, svp/CFO, noted that the company would develop new retail-related enterprises that will help it build on brick-and-mortar initiatives such as the purchase of Whole Foods Market, the expansion of Amazon Books, the partnership with Kohl’s and the roll out of the Amazon Key in-home delivery service.

Already, Amazon has added Whole Foods private label products to its food selection and installed Amazon Lockers in the food retailer’s stores so that its online customers have a convenient place to pick up and return products as an alternative to home delivery.

As it more closely integrates operations such as Prime Now, AmazonFresh, Whole Foods and Amazon Lockers, and continues testing the Kohl’s partnership, the company is evaluating its retail opportunities, including how it can advance plans to develop brick and mortar formats, a move that was in the works even before the Whole Foods acquisition, Olsavsky said.

Integration will be a complex process, Olsavsky noted, but the company is determined to establish new store formats, with consideration toward applying technology to future real world operations as a way of enhancing its prospects and performance.