Seattle is where Amazon’s main headquarters is based and is known as a fairly tech savvy market. It is a perfect launch location to get some hands on experience in the retail sphere. A source has told us that they are not looking to launch a huge store with thousands of square feet. Instead they are going the boutique route and stocking the shelves with only high margin and high-end items. Their intention is to mainly hustle their entire line of Kindle e-Readers and the Kindle Fire. They also will be stocking a ton of accessories such as cases, screen protectors, and USB adapters.
Whether or not the story is true, it’s been expected for quite some time that Amazon would soon be stepping out into the physical realm.
While this is big news for the company, I think it would be better for them if they did not open their own independent store, but instead propositioned already well established retailers (i.e. Best Buy) into having a sort of store within a store concept (similar to what Apple are doing with Target in the U.S.,) where there would be an Amazon specialized booth/section somewhere in the store. Especially with the relatively small profit margins the company posted for Q4 2011, as well as them actually expecting to lose money this quarter — this may just turn out to be money poured down the drain for the online retailer.