Amazon’s Disruption

    Have you ever noticed fashion trends tend to by reused. Your kids are probably wearing the exact clothes you wore when you were their age.

    The Cycle –

    The same cycling is happening with Amazon’s disruption of the retail market. They have altered how consumers get goods. Rather than having to go into stores for daily goods, you click a button online and you will get it in two days. No need to even have to transport it yourself. We have seen many closures of stores, even ones in our community. Sears and Kmart to name a few. Now, consumers are starting to swing back towards the middle where they understand that online goods take time to be shipped. So if they want it immediately they are starting to utilize these same-day pick-up services being offered by King Soopers and Walmarts of the world. Knowing this, Amazon has now successfully purchased Whole Foods to establish brick & mortar locations.

    Real Estate Means Access –

    They disrupted the market by only doing online sales. Now to stay competitive they have to utilize real estate to make their products accessible to customers in real-time. This acquisition of $14 billion made that business model possible. Soon you will see Amazon using Whole Foods around the United States as fulfillment centers in addition to real-time pick-up locations for customers. Wherever they don’t have locations, you will see them potentially buy more properties to meet these new consumer demands.

    The moral of the story is that no matter what, a home base and location for customers to access your services is critical to growth. In fact, more and more consumers want to have engagement in small boutiques for socializing reasons and want to be able to access unique goods. So the boutiques that dissolved because of the big box stores take-over, are now making their come-back.

    RE/MAX Capitol Properties is here for all of your commercial real estate needs. If you are ready for a brick and mortar store, then give us a call and we’ll guide you through the process. Connect with us at 307-635-0303 to schedule an appointment to go over your needs, timeline and budget.

     

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