Following the physical store in Seattle last year, the e-commerce juggernaut was thinking of extending the Pop-Up stores in other cities across the biggest cities of America amid the slowdown of the stock for successive sessions. Aside from the United States, the e-commerce has made an agreement with Morrisons to open in-store Amazon Lockers in the U.K.
More Physical Stores?
Considered as the top online website globally, Amazon’s retail service is now extended through its physical stores. The report came out which pointed out 100 pop-up retail stores which will cater Fire Tablets, Kindle, Fire TV and Dash Button. This solid and newest marketing strategy of Amazon may reach out more consumers and may serve as a perfect alternative or option.
In reality, despite the technological breakthroughs, there are still shoppers who aren’t comfortable purchasing items online. For instance, some consumers would like to see the product with their own naked eyes and check its quality when it is right in front of them. It is a smart move for Amazon to consider this option, and extending their target market.
Adding to this, more and more teens and young adults are actively hitting the malls, thus, the visibility of the stores could drive more profit for the company. Considering that the holidays are approaching and people are just looking for gifts, Amazon made the right decision to come up with a project like this.
Meanwhile, after the successful tie-up with Amazon Pantry, the fourth largest chain of supermarkets in the United Kingdom renewed partnership with the king of retail. Morrisons plans to open Amazon pick-up points as it invites more shoppers to visit. The supermarket will provide an easy access to Amazon customers. They can just simply order online and pick up the item at Morrisons.
Although it may sound like a win-win situation for both, Amazon could have a much greater advantage here. The American company is currently aiming to get the heart of the British to engage in its delivery services. Through Prime Now, Amazon Fresh and Amazon Pantry, the company has entered the United Kingdom, gaining more avid shoppers. What’s the best thing about these pick-up points? It ensures the worrisome consumers that the items they ordered will be delivered efficiently.
Following the trend of the stock these past few sessions, it kept on moving downward from $748.48 in the mid of the week, it plunged to $760.14 last Friday. The downfall merely started before the end of the second half. On June 27, Amazon was reported of giving dozens of brands dash buttons “even if no one is asking for more buttons.” The stock dipped to $707.14 from the steady $722.08 prior to the announcement.
As seen in the image below, Amazon stayed in a tight trading range in the month of August. There was no huge downfall or upsurge; keeping it just steady. However, in September, the stock made a huge climb at $786.16 and it was followed by a decline.
Based on the latest trade data, Amazon has a market capitalization of 349.37 billion and a price earnings ratio of 189.55. The e-commerce company had a beta ratio of 1.1 with a trading volume around 4,000,000 shares. It's 50-day moving average stood at $763.53 and its 200-day moving average was at $683.28. Currently, the stock has a 12-month high of $790.79 and 12-month low of $474.00.
Investors need to be keen in the recent expansion movement of the Amazon. It may be performing poorly in the market, still its series of tie-ups and projects are pushing through. Just how much and how big is it capable of? Back on its second quarter earnings report, Amazon disclosed its plans to double its content spend year-over-year in the second half of 2016. Therefore, expect for more investments and just keep up with its market performance.