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Amazon.com, Inc. (AMZN) Is Going Brick and Mortar

The online retailer, Amazon.com, Inc. (NASDAQ:AMZN) has two possible candidates lined up in its attempt to have a brick and mortar presence. On CNBC, Robert Peck of SunTrust Robinson Humphrey and CNBC’s contributor, Herb Greenberg debated which one among RadioShack Corporation (NYSE:RSH) and Best Buy Co Inc (NYSE:BBY) is a better candidate for Amazon.com, Inc. (NASDAQ:AMZN) to purchase.

Amazon.com, Inc. (NASDAQ:AMZN)

RadioShack Corporation (NYSE:RSH) has a larger number of retail outlets which means more than 4000 stores and of course as Peck explained these could be cherry picked by Amazon.com, Inc. (NASDAQ:AMZN) as they are all mostly on lease, if the company wants to restrict its distribution network.

With this extensive network, Peck believed that Amazon.com, Inc. (NASDAQ:AMZN) could offer its customers same day delivery through pick up store delivery, something which has been a great weakness for the internet based retail company.

Moreover, Peck pointed out that Amazon.com, Inc. (NASDAQ:AMZN) can showcase its products if it goes for RadioShack.

However, Greenberg raised some really interesting points which tilted the debate in his favour. He mentioned that Amazon.com, Inc. (NASDAQ:AMZN) doesn’t have the sort of products that need showcasing. Hence, Amazon should aim for an electronics retailer presence, and that would require space, since people like to see or touch the goods that they are buying and only Best Buy can provide that.

“[…] They could use some of the local distribution and I get it, but this isn’t really to show off AMZN’s products which really are not products and which they don’t even need to really show off. It’s a place to show off just electronics […],” said Greenberg.

According to Greenberg Amazon.com, Inc. (NASDAQ:AMZN) requires a broader footprint and customers who want to buy a tv, a laptop or other electronics equipment will not mind driving a few kilometers more so that they can have a better feel of the product. Hence he advocated Best Buy for Amazon.com, Inc. (NASDAQ:AMZN).

Disclosure: none

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