Amazon (AMZN - Free Report) is firing on all cylinders to enhance footprint in the retail sector on the back of its expanding physical presence.
Reportedly, the company is gearing up to roll out its pop-up stores in Britain as part of its pilot project. Notably, Amazon will be opening 10 such stores in association with small business support group, Enterprise Nation.
The stores are named as “Clicks and Mortar” and the first of it will be inaugurated at St. Mary’s Gate, Manchester-England today.
Notably, these stores will offer electronics, homeware, food and drink, and health and beauty items to customers from several small online sellers.
Amazon to Gain from the Initiative
We believe the latest move will not only benefit Amazon’s retail reach in Britain but also boost the sales of the small third-party sellers.
The move will give sellers an opportunity to expand customer reach in streets of Britain. Moreover, these sellers will be able to expand customer base by leveraging popularity of e-commerce platform of Amazon.
Swifty Scooters a foldable adult scooter company, Altr for Men offering men’s skincare products and Torro Cases selling leather accessories for smartphones are some of the sellers whose products will be available at these stores.
Further, in order to help the small businesses to expand operations and productivity, the company is also shelling out $1.26 million to train more than 150 full-time apprentices.
Additionally, Amazon will produce an independent research report on the success of the new pilot stores which will aid the "Future High Street" strategy of the U.K. government.
All these social benefits are expected aid business growth of Amazon.
Expanding Physical Presence: A Major Positive
The new pop-up stores bode well for the company’s strong endeavors to expand physical presence.
Recently, Amazon revealed plans to shut down all its 87 pop-up stores in the United States in order to open additional bookstores and 4-Star stores, which in turn will expand physical presence.
Further, the e-commerce giant intends to take the number of its cashierless store, Amazon Go to a record of 3,000 stores by 2021. This is in sync with its strategy of aggressive expansion into the retail space.
Additionally, the company bolstered presence in the grocery market with the Whole Foods acquisition. Moreover, it has around 15 offline bookstores in total, while three have a work-in-progress status.
Consequently, all the above mentioned endeavors are persistently aiding Amazon to strengthen retail position in the United States. Moreover, the concept of pop-up stores in Britain is expected to aid its presence in the country.
After Manchester, the company is likely to open these stores in Wales, Scotland, the Midlands, Yorkshire and the South East.
Zacks Rank & Stocks to Consider
Currently, Amazon Carries a Zacks Ranks #3 (Hold).
Some better-ranked stocks that can be considered in the broader technology sector are eGain Corp. (EGAN - Free Report) , PayPal Holdings, Inc. (PYPL - Free Report) and Alteryx, Inc. (AYX - Free Report) . While eGain sports a Zacks Rank #1 (Strong Buy), PayPal and Alteryx carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long term earnings growth rate for eGain, PayPal and Alteryx is currently pegged at 30%, 17.91% and 13.66%, respectively.
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