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Industry News

Amazon needs physical stores to grow

Why is Amazon establishing a presence in the physical world? Because stores are where people prefer to buy most of their stuff, according to CNBC. Bookstores, supermarkets and possibly even furniture stores are part of the online retailer’s growth strategy, CFO Brian Olsavsky said on the retailer’s earnings call last month.

For categories like groceries, household goods and health and beauty, consumers much prefer in-store shopping, financial research firm analyst Gordon Haskett said in a recent survey. "Despite Amazon's dominance in online traffic, the majority of purchases in several sub-categories still occurs in-store," Haskett wrote.

By Brannon Boswell

Managing Editor/SCT