Amazon Announces New In-Store Pick-Up Counters

Amazon seems like a never-ending source of news for commercial real estate. This world-famous retail giant is constantly making headlines, setting trends, and disrupting industries all around the globe.

And, this cycle is set to continue into 2020. Amazon is rolling out a new partnership this year and it’s set to make huge waves in retail – and, because it’s rooted in physical retail, in CRE as well.

Amazon is taking another step towards brick-and-mortar with their recent announcement of their new in-store pick-up counters. Here’s what commercial real estate professionals need to know about Amazon’s newest line of business:

Amazon: Coming to a Store Near You

2019 was a big year for Amazon’s expansion. The online retail brand pushed the boundaries by adapting the module for e-commerce package pick-up options. Amazon’s speedy shipping options sparked a delivery war amongst some of retail’s biggest brands; including Target and Walmart.

Now, Amazon has something new up their sleeves. Their new store partnerships are bringing Amazon pick-up counters to popular retail stores. This home-delivery alternative is reshaping the way Amazon shoppers receive their purchases.

The pick-up counters are similar to retail’s BOPIS trend, where customers buy products online and pick them up in stores, except that Amazon played it smart. It offers shoppers greater convenience, ease, and access to their e-commerce goods.

Instead of opening up new Amazon stores, the company made a deal with pre-existing retail spaces. Brands like Health Smart, GNC, Rite-Aid, and Smart Stores are sharing some of their physical space with their new (and wildly popular) co-tenant: Amazon.

This module was a cost-effective strategy played by Amazon since they didn’t need to invest in new locations or deal with the leasing-and-buying process. Amazon Hub is also in charge of Amazon’s multifamily lockers which grew in popularity throughout 2019.

Let’s take a look at how the Amazon Pick-Up Counters will impact retail this year.

Increase Foot Traffic for the Physical Retail Scene

Amazon’s Pick-Up Counters will be fueling an increase in foot traffic to physical retailers.

Similar to the BOPIS module, store pick-ups drive tons of shoppers into brick and mortar locations. Shoppers will likely purchase additional products whenever they go in to get their pre-purchased items.

This boosts business for the retail brands who house the Amazon pick-up counters, which can play a huge role in reinvigorating the retail scene.

Providing Retail Brands with a Competitive Advantage

As of 2019, 89% of consumers were browsing Amazon’s digital marketplace. 95 million people have Amazon Prime memberships in the US alone, and the average member spends $1.4K on Amazon each year.

This massive demographic of consumers can be tapped into by retailers who partner up with Amazon’s Pick-Up Counter project. Amazon shoppers will be entering into physical store locations which expands the potential reach of any company.

It is a proposition that’s offering retailer’s a major competitive advantage as it has massive potential to boost business and fuel new sales. Commercial real estate should pay close attention to the impact that Amazon’s Pick-Up Counters will have on the industry this year and beyond.