Note from the Editor

Dear readers,

This week, the Wall Street Journal sent a ripple through the retail industry with a report that Amazon is looking to open up to 400 physical bookstores. The news was based on a comment made toward the end of an earnings call by Sandeep Mathrani, CEO of mall operator General Growth Properties.

"You've got Amazon opening brick-and-mortar bookstores and their goal is to open, as I understand, 300 to 400 bookstores," Mathrani said.

Amazon declined to comment for the story, but the news was later confirmed by the New York Times through an anonymous source briefed on the matter. But the source also told the Times that Amazon's plans were “modest,” particularly when compared to the 300-400 figure that Mathrani offered. Technology news site Re/Code published an article that further verified the news, according to two sources familiar with the matter, although the article also didn’t stipulate a specific number of stores.

Then, things got strange. On Wednesday, General Growth Properties issued a statement saying that Mathrani’s comments were “not intended to represent Amazon’s plans.” While GGP and Mathrani have now backtracked, this is not exactly a retraction of the statement. You can find the updated story here. When reached by Retail Dive, Amazon declined to comment on its future store plans.

Regardless of what exactly Amazon's store plans are, here at Retail Dive we see this report as representative of a larger trend in the industry. Even as brick-and-mortar retailers face market pressures, previously pure-play online retailers such as Warby Parker, Bonobos, and Birchbox are opening stores and showrooms.

There are many advantages to doing so, from streamlining the fulfillment chain, attracting new customers, and reducing return processing costs. But perhaps the most important is the ability to provide an “experience” to the customer—letting them touch and try the latest products—that is exceedingly difficult to replicate online.

Be sure to check out today's feature on why it makes sense for Amazon and other pure-play e-retailers to open stores. As always, please feel free to email me with any questions or comments at [email protected].

. Best,
Kelsey Lindsey
Associate Editor, Retail Dive
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