Episode Details

Main Takeaways:

• Amazon takes a third (actually more like fifth) leap into physical retail.
• Phillip takes a trip down memory lane, was Service Merchandise the original Amazon?
• This episode would make it into Amazon's 4-star store.
• Retailers may want to jump on the Amazon copycat train for better in-store curation.

Amazon Opens Yet Another Retail Space: Is Brick and Mortar Back?

• Amazon adds another retail store to its collection, Amazon 4-Star will join Amazon Books and Amazon Go.

• This is the first of Amazon's stores that replicates Amazon in an in-store experience.

• Whole Foods also counts as an Amazon retail experience (Amazon acquired Whole Foods in 2017).

• Amazon 4-Star will exclusively feature products from it's website that have a four-star rating or better. This will allow for more consumer confidence in quality.

• Still, with millions of products, Amazon will still have to curate the best products and create an engaging in-store experience.  

• Amazon 4-Star is the latest slap to the face of the so-called "retail apocalypse", and Amazon proves that innovation really can change the game.

• We learn that Phillip is really into the Hamilton musical.

What Can Other Retailers Learn From the Amazon In-store Model?

• Retailers should follow the curation metric that Amazon has laid out in Amazon 4-Star and only source products that rank over "four stars."

• Amazon has replaced paper tags with digital "real time" electronic shelf labels, which will display not only the price of the product, but also Amazon Prime savings, and the number of reviews a product has received.

• This points to an understanding between Amazon and their customer base that new innovation is needed in retail, and that this type of in-store experience is the future of retail.

Online vs. In-Store Shopping: Customer Experience Edition:

• The question remains, why would a customer patronize one of Amazon's brick and mortar stores, be it Amazon 4-star, Amazon Go, or Amazon Books when there's convenience in ordering online?

• Or if you live in certain parts of the country there's Amazon Prime Now with extra convenient two-hour shipping.

• Well, it's all about the experience that the customer is looking for, with Amazon in-store and online offering different modalities.

• An online, Amazon prime experience seems to be all about convenience. And really, who would ever want to have to leave their house to shop?

• Brian makes the case that this kind of retail experience is all about discovery, and finding the best of Amazon.

• Phillip time-travels to the 1980's, to a store called Service Merchandise, a catalog store with a