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Amazon.com, Inc. (AMZN) Helping Revive Bookstores? New San Diego Store to Open

Amazon.com Inc (NASAQ:AMZN) Brick and Mortor Stores

Amazon.com, Inc shot down the concept of retail bookstores in the last few years, but now it’s on the verge of reviving them. The online retailer announced it’s opening a second physical bookstore. This time it will be located in San Diego, a few months after it opened a Seattle location.

Amazon.com, Inc Making Bookstores Cool Again?

It’s likely been a while since you’ve step foot inside a bookstore because you can get all sorts of books on Amazon – yes, even “The Romantic Text Message Guide.” But that may change in the coming years as Amazon has decided to enter the brick-and-mortar bookstore business. How ironic.

Amazon.com Inc (NASAQ:AMZN) Brick and Mortor Stores

In November, the online retail titan opened a physical bookstore in Seattle. It was celebrated as something new and combined the benefits of the Amazon website to the fun of a bookstore.

The company recently announced that it’s launching a physical bookstore in San Diego. The brand new location will be at the Westfield UTC Mall, an affluent outdoor shopping center. The store is expected to open its doors this summer and create a large number of jobs for cashiers, managers and so-called “device enthusiasts.” Akin to the Seattle location, the store will feature well-reviewed books and sell Amazon’s technology (Kindle, Fire and other goodies).

“We are excited to be bringing Amazon Books to the University Towne Center Mall in San Diego and we are currently hiring store managers and associates,” said Amazon spokesperson Sarah Gelman in a statement. “Stay tuned for additional details down the road.”

Amazon’s bookstore will share the same shopping mall as the Apple Store, Macy’s, Nordstrom and the Tesla store. You have everything you want in one space: technology and clothing.

A Look at the Bookstore Industry

Many attribute Amazon.com, Inc as the reason why bookstores have pretty much entered the dustbins of history. The website maintains an immense literary collection at low prices, and even free shipping over a certain amount. You can browse and read a few pages in the comfort of your own home.

With this kind of alternative, why would anyone want to visit Barnes & Noble in the U.S. or Indigo in Canada?

The bookstore industry is currently valued at $13 billion, and has maintained an annual growth rate (2010 to 2015) of negative 6.5 percent. Bookstore sales have been falling 9.6 percent since 2007. Ebook sales continue to grow and have already captured more than $3 billion of the book sales market – more and more kids are reading ebooks today.

And, what may be the least surprising statistic: Amazon controls one-quarter of the book market, and has dominated both independent bookstores and the mega chains.

So it may be ironic that Amazon killed bookstores, but has decided to enter the physical bookstore market.

Or perhaps it has something to do with the fact that e-reader shipments aren’t rising like the website was hoping. Or perhaps the bookstore locations are in relation to this latest finding: independent bookstores could very well be making a comeback. As smaller bookstores hone in on specialized niche markets, Amazon may feel threatened and wants to dominate this market , too.

Even if consumers don’t want to go to bookstores, Amazon has the necessary revenues to experiment with brick-and-mortar stores. And it’s not making the mistake of opening 1,000 locations all at once. Amazon is likely playing the long game and being slow and steady.

If consumers like Amazon’s bookstore then that’s great. If they don’t, it won’t be that big of a deal to the retailer as it will just reallocate those resources into some other moneymaking venture.

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