Amazon recently opened their first retail store on the campus of Purdue University. Now, Google is following suit with a retail store of their own. These e-commerce giants realize that there is still power in having physical retail space. They are testing whether these small retail stores will improve their supply chain power and strengthen their online brands.
President of SW Retail Advisers, Stacey Widlitz, told CNBC, “Pop-up shops are the most effective way to test the retail waters and bring your product to the consumer in a low cost, short-term way. The test might also help brands realize they are actually not ready for the physical world.”
Like Amazon, Google plans to use their retail stores to fuel sales and lower shipping costs by allowing customers to pick up their online orders. They will still offer customers the option of home delivery, but their retail stores will help customers realize more savings along the supply chain. These brick-and-mortar ecommerce stores will probably become popular across the U.S. if the first few prove successful.
Google’s first physical retail store is located in London. They primarily sell Android phones, Chromebooks, and other electronics. Of course, their retail space is more impressive than simply displaying items for sale. Google has a massive screen that customers can use for an immersive experience with Google Maps. There will also be screens for Google Play movies and YouTube videos, as well as a wall where customers can try out digital spray paint.
If Google is successful, their retail store could really improve their supply chain. Earlier this year, they announced that they’d be introducing a “Buy Now” button on their search engine results. The physical Google store could be a place for customers to pick up the products they purchase and save on shipping costs. Google also wouldn’t have to worry about the added logistics of home delivery.