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.

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

Amazon is taking another step towards brick-and-mortar with its recent announcement of its 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 its sleeves. Its 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.

Amazon’s pick-up counters are similar to retail’s BOPIS trend, where customers buy products online and pick them up in stores. They offer 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 it didn’t require the 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 when 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 retailers 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.