1 Reason Google Inc (GOOG) Should Open Retail Stores

Google can afford to try this
Investors may argue that Google hasn’t been in the retail space at all (outside of a few Chome Zone stores), and they’re doing just fine in the tech space — and they’d be right. But with Apple pushing further into retail and Microsoft building new stores each year, Google would be unwise to let these competitors own the tech retail space. That’s not to say that Google needs retail stores to survive, but if Microsoft becomes even remotely successful with its stores and Apple continues to expand its retail endeavors, Google could lose out on building brand awareness with its stores and winning new costumers from retail locations.

Even if Google launches physical stores and they flop, investors shouldn’t expect the company’s revenue to hurt that badly. More than 80% of Google’s net revenue comes from its Internet search side of the business, and a few stores wouldn’t change that. Retail locations should be viewed as a way for the company to market its Nexus line, Chromebooks, and future products, and to connect with current and potential mobile customers.

The article 1 Reason Google Should Open Retail Stores originally appeared on Fool.com and is written by Chris Neiger.

Fool contributor Chris Neiger has no position in any stocks mentioned. The Motley Fool recommends Apple, Goldman Sachs, and Google. The Motley Fool owns shares of Apple, Google, Hertz Global (NYSE:HTZ) Holdings, and Microsoft.

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