This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Can Amazon Put Brick-and-Mortar Retail Back Together Again?

Stocks in this article: AMZNSBUXNFLXAAPL

NEW YORK ( TheStreet) -- I have been a big proponent of flagship Amazon.com (AMZN) retail stores for some time.

Jeff Bezos, speaking to Charlie Rose on CBS, discussed the issue. In the process, he proved why he is, by leaps and bounds, the best CEO in the world, right alongside Howard Schultz at Starbucks (SBUX).

Watch this. It is simply fantastic stuff (with respect to CBS, you might have to sit through a 30-second commercial, but it's well worth it):

If your first reaction was Wait a minute, the Kindle Fire is a 'me, too' product, you really don't understand Amazon. Sadly, I might not be able to save you, but I'll try.

If 100 companies are doing something and you're the 101st, you're not really bringing any value to society.

Couple this with the strategy of aggressive spending to seize massive opportunity and, again, with the exception of Starbucks, there is not another company, across industries, doing anything even as close to entrepreneurial, innovative and exciting as Amazon.

Plenty of companies with limited resources, relative to Amazon and Starbucks, are taking similar chances, but it's a different ball game. Very few giants and blue-chips take this approach. They park money overseas, hem and haw about political gridlock and produce uninspiring copycats of what everybody else is already doing. That's not money well spent.

So, we know that Amazon took the $3 billion bond because it's a great environment to do it in. It's relatively cheap debt and the company has so many different directions it can go in to get a solid ROI from the move.

It will work on Amazon Web Services. It's dropping serious cash on a new headquarters building. Of course, Jeff Bezos is probably frightened by Netflix (NFLX) CEO Reed Hastings' strong words ( via All Things D) so he needs extra cash to spend on digital content.

There's little doubt in most people's minds that, as it exponentially expands its fulfillment capacity in and around major urban centers, Amazon will shoot for same-day delivery.

That brings us to the possibility of physical retail.

Amazon already tests something like same-day delivery in select cities across the U.S. -- Amazon Locker. For some items you have the option at checkout to pick up your items at a location somewhere in your city.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,195.42 +221.11 1.30%
S&P 500 0.00 -2.75 -0.14%
NASDAQ 4,566.1380 +16.9120 0.37%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs