Amazon is taking over an entire building on 34th Street across from the Empire State Building, according to construction and real estate executives, raising questions about just what the giant retailer is up to.
The
property, at 7 West 34th Street, is 12 stories. The executives said
Amazon would use the building for offices and a distribution center.
This week, Amazon abruptly pulled out of a deal for a large block of space at 1133 Avenue of the Americas.
The
retailer has no brick-and-mortar presence in Manhattan or, for that
matter, anywhere else. So the deal ignited intense speculation that
perhaps Amazon was going to do something that has been endlessly
rumored: open an old-fashioned store.
The prospect of a store was first reported by The Wall Street Journal.
But whether there will be an Amazon store any time soon on 34th Street seems an open question.
The
two retail outlets in the building, a Mango and an Express store,
recently signed new leases. Juliana Ochoa, store manager at the Mango
store, said the retailer had no plans to move out of its space. “I’ve
never heard of Amazon coming here,” she said.
An
Amazon spokesman declined to comment. Lisa Vogel, a spokeswoman for
Vornado Realty Trust, which owns the building, did not return calls for
comment.
The
building, near Macy’s flagship store at Herald Square, has been
undergoing major renovations since December, said Miriam Gonzalez, an
employee at an import-export company there.
During
the renovations, the front entrance was off limits to occupants, she
said. But that entrance reopened about two weeks ago, installed with
what looked like new metal detectors.
Ms.
Gonzalez said that many tenants had moved out, but that other
businesses, mostly corporate offices, remained on the upper floors.
An
engineer at the building on Thursday said that there was a showroom
space at the back of the building, which faces 35th Street, and that it
was not in use. The doors and windows to what appeared to be that space
looked as if they had been sealed for some time.
A
distribution center would come with its own complexities. Companies
have been moving their warehouses out of, not into, Manhattan for
decades. Perhaps the delivery drones that Amazon says it is working on
fit into the secret plans here. That would at least solve the traffic
problems.
A
stock of inventory in Manhattan could conceivably offer advantages,
like same-day delivery of books, an area in which Barnes & Noble has
tried to set itself apart.
Amazon’s
opening of a physical store is one of those stories that is constantly
the subject of speculation in the technology news media, similar to what
the next iPhone will be like or what the iPhone after that will be
like. The Journal’s report of a possible Amazon store immediately became
the top article on the Techmeme site, which collects technology news.
Part
of the fascination is the irony: The company that basically invented
e-commerce would be acknowledging the virtues of old-fashioned shopping.
Partly, also, it seems inevitable. For all their focus on the future,
technology companies have been expanding to traditional retail for quite
a while.
“There’s
a growing realization that you can’t force customers to shop in just
one way,” said Chris Donnelly, global managing director of retail
strategy at Accenture, a consulting firm. “We’re in a world where the
retailer can no longer dictate the shopping experience.”
The pioneer here was Apple, which has more than 400 stores worldwide. Microsoft has quietly followed, with more than 50.
Even
Amazon has partnered with retail outlets for its Lockers, secure places
that customers can pick up a purchase if they cannot get it delivered
to their home. But the retailer has declined to make the sort of
wholehearted commitment that its peers did.
As
Radio Shack struggled recently to stay viable, there was speculation
that Amazon would snap up the chain and infuse it with new life. It did
not do so.
If
one of the ground-floor retailers at the 34th Street property is bought
out and the space does indeed become an Amazon outlet, the likeliest
outcome is that it will be a showroom for Amazon’s hardware, including
its respected Kindle line of tablets and e-readers and its unpopular
Fire phone.
“It
makes sense to have a physical showroom to let people see Amazon’s
hardware products, particularly with the Kindle priced at $100,” said
Colin Gillis, an analyst at BGC Partners. “You want to touch and see and
feel these things.”

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