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Amazon Planning on Brick & Mortar Book Chain

On January 6, 2016, I asked several questions regarding Amazon's intentions of opening a chain of brick & mortar books stores. (See Amazon enters the bricks and mortar market )

On February 3, 2016, I got my answers.

This week, the New York Times and the Wall Street Journal are both discussing Amazon's move into a new book selling platform. Sources close to the operations of the Settle based brick & mortar Amazon bookstore are indicating that the retail giant is planning a national super strategy of 300 to 400 Amazon book stores to be opened in 2016.

In another life, time, and space, Mary (my wife and partner) dwelt with Amazon. The years were 1995 through 2000. We owned a book store, both electronically and physically. In those days, Amazon was partner, not a threat.

Amazon had only seven full time staff, who worked at stations made with doors across two saw horse structures. Their stock was trading about 18 dollars a share back then.

What had pushed Amazon to national selling platform was their media campaign. Jeff Bezos had three well placed interviews in the New York Times, Washington Post, and the Wall Street Journal. Their first graphic ad was a full page in the New York times showing the statue of Liberty in New York Harbor, with books stacked up to her chin. Amazon's sales motto was, "We are the world's largest bookstore on the planet."

What the world didn't know was that Amazon didn't have any books at all. Their new books were shipped to customers from the Ingram New Book warehouses in Nashville, Tennessee. All of Amazon's out-of-print books were shipped from 1200 antique and out of print independent book dealers across America.

Over the years, I have learned one thing from dealing with Amazon. They are not a for profit retail business. They are a super stock trading company, where the bottom line is all about the quarterly stock performance. People think Amazon is scattered in its approach to retail selling. The truth is, Amazon management has been brilliant in their 20 year run by going from just under $20 stock to over $500 price per share.

When Amazon builds a bookstore for each of 400 metropolitan population areas, the days of Barnes & Noble will be numbered. Barnes & Noble has 640 stores, and Books-a-Million has 255, mostly in the South.

It is hard for me to root for either one. In the old days, it was the power of Barnes & Noble that sought to destroy all independent booksellers. (Watch the movie "You've Got Mail" - a romantic take on what the chains did to the small independent book store.)

Now, in 2016, bookselling is about to be re-invented. May the best man or stock company be victorious.

I am still rooting for the small independent bookseller.


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