According to the Sunday Times, online retailing giant Amazon is in talks with UK property dealers with the aim of opening stores on Britain's high streets.
The newspaper believes that Amazon's plan is to open stores for the benefit of customers who wish to buy online, and then collect their goods locally. Other eCommerce retailers that operate a similar model include Argos and John Lewis. Argos publicises the fact that 18% of its online sales fall into this category.
However, an Amazon spokesperson has reacted to the story by saying: "We have no plans to open physical retail stores anywhere in the world."
Given Amazon's clout in the online market, there's little surprise that it is rumoured to be looking at alternative distribution methods. Recent Royal Mail strikes have highlighted one major vulnerability of mail-order business models, and alternative distribution methods could only help shore up Amazon's reputation for reliability.
Town centre stores could also help increase the volume of larger items sold by Amazon. A source quoted by the Sunday Times said that "When Amazon was just selling books and CDs that fitted easily through the letterbox, it was fine to be a web-only business. But now it has branched out in to everything from children's bikes to electricals, it believes it could boost sales by having stores that offer a collection point for shoppers."
For now we'll have to go with the company's denial. But we'd be surprised if this is a subject that doesn't enter the spotlight more and more often. Even if there's nothing in it, it's certainly canny online marketing.
