Amazon store may be a model for retail

Or not, but what this giant does is worth tracking

Amazon is opening a store in Seattle, mainly it seems to follow Apple's success. Of course, this is all about Amazon's costly investment in the kindle and it needs all the outlets it can get if it expects to go head to head with the iphone and ipad.

Frankly, I can see Amazon losing money here for a few years to come and the stores investment won't be cheap, particularly as it is a lot less profitable than selling on line.

Amazon's advisers are judging the stores strictly on their ROI, but there must be more to it than that. Now that the company is a hardware vendor, it needs to grow not just distribution but the brand as well. Stores should not be judged on sales per square foot alone, but on their ability to drive sales through the amazon on line channel.

This then immediately requires a rethink on what the stores should look like and how they should merchandise. Selling kindles alone won't cut it.