Dive Brief:
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Amazon confirmed to Fortune that it will open its third bookstore in Portland, OR's Washington Square Mall. The online retail giant is currently hiring store managers and associates.
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The Portland store follows the opening of Amazon's first brick-and-mortar location in its hometown of Seattle and plans for a second site in San Diego.
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Amazon CEO Jeff Bezos said last month at a shareholders meeting that the company is planning more brick-and-mortar stores, although it's still working out how many.
Dive Insight:
As most everyone knows by now, Amazon began its disruption of the retail sector by selling books online, and many see the irony in the fact that it's now expanding its business into brick and mortar.
But bookstores haven’t been Amazon’s worst victims: Many independent booksellers have defied the predictions of doom in light of the Amazon effect, and some have actually thrived. Their surprising survival and even revival is one of the biggest success stories of the “buy local” movement: In recent years new bookstore openings have in fact outpaced closings.
That could give other retailers hope about their battle with Amazon (and e-commerce in general), although Amazon has raised the stakes with its formidable Prime membership program, increasing fulfillment efficiencies and expanding last-mile delivery.
Bookstores may not be too worried about the company's foray into brick and mortar, considering that early reviews find Amazon's store to be somewhat odd. And bookstores' abiding strength has a foundation built by loyal customers who actively eschew Amazon's lower prices for the chance to interact with bookstore staff and support local business.
As with Amazon’s e-commerce efforts, though, its operations aren’t just about sales. Many, including Forrester Research analyst Sucharita Mulpuru, believe that Amazon’s foray into brick and mortar is designed to vacuum up and cough out data.
"If they sell books, awesome,” Mulpuru told Business Insider last year. “Even if they don't sell books, there's a lot to learn about how people discover products, how they shop for products. Does a physical store increase your likelihood to spend with Amazon in general? Does it make you more loyal to Amazon?”
Bezos said much the same thing in his remarks last month: “In these early days, it’s all about learning, rather than trying to earn a lot of revenue.”
Retail futurist Doug Stephens agrees that nobody should be too surprised about Amazon’s continued expansion into physical retail.
“Everyone was shocked and amazed at Amazon’s bookstore, but the bookstore is a trojan horse, to get devices into consumers’ hands,” Stephens told Retail Dive earlier this year. “Everything Amazon does is aimed at that—getting their consumer into their ecosystem.”