Amazon Commits to Brick and Mortar Retail With Whole Foods Purchase

The impact that Amazon has had on the way people shop is undeniable. The ecommerce giant has transformed retail with features such as free 2 day shipping and “Prime Day,” while capturing 43% of all online retail sales. Amazon’s success has led many to believe that retail is moving exclusively online, however recent actions taken by the ecommerce leader demonstrate that brick and mortar will continue to play an important role in retail for a long time to come.

Interestingly, Amazon has come full circle; after years of punishing brick and mortar booksellers with the world’s largest online selection of books, the company is now opening their own physical stores. With seven stores open and six more on the way, Amazon Books is generating buzz among retail marketers and customers alike. Amazon’s activity in the physical world – including launching their own stores, their recent purchase of Whole Foods, and last year’s Amazon Go announcement – begs the question: in a world that is said to be moving online, why is it that the leading ecommerce company is moving into the brick and mortar space? The answer: to satisfy consumers.

In today’s world, shoppers expect an omnichannel experience. They want the ability to move effortlessly between channels, including physical store locations, where 90% of retail transactions still take place. While Amazon is the undisputed leader in online retail, the company recognizes the value of brick and mortar in providing consumers with choice, service and more personal experiences. In addition to driving retail sales, new physical locations will benefit Amazon’s distribution operations, while also providing the company with direct insight into the physical world behaviors and preferences of its customers. With Amazon’s treasure trove of online shopper data, rich marketing and personalization expertise, and an ability to leverage technology to deliver industry-leading consumer experiences, you can bet that shopping in an Amazon-owned brick and mortar store will be anything but “traditional”.

Leading national retailers have already begun taking advantage of the latest technology to transform their in-store shopping experiences. With indoor digital location signals and mobile presence marketing capabilities that allow them to understand and engage with shoppers like never before, brick and mortar retailers are ready for Amazon’s advances. Contact us to learn more about how Swirl is leading the retail revolution.

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