Why Is Amazon Opening Physical Bookstores?

On the Media | Mar 2, 2016

Last month, an off-the-cuff remark by a giant property manager triggered curiosity and panic among bookstore owners. Sandeep Mathrani, CEO of General Growth Properties, casually mentioned that Amazon planned to open hundreds of retail locations. "You've got Amazon opening bricks and mortar bookstores, and their goal is to open, as I understand, 300 to 400 bookstores," he said in an earnings call.

Mathrani later walked back from that remark, saying that his comment "was not intended to represent Amazon's plans." Amazon itself has declined to comment. But those who have watched the company closely over the years say there are some intriguing strategic reasons why Amazon might want to open physical retail locations. Rob Salkowitz, author of Comic-Con and the Business of Pop Culture, offers Bob a few theories about Amazon's long-term plans for bookstores.

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