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Amazon gets real and Tesco goes virtual

10 February 2012

The relationship between high-street shopping and internet stores was highlighted again this week as Amazon, the world’s largest online retailer, prepares to open a physical store in Seattle while Tesco continues to expand its virtual shopping walls in South Korea.

Tesco’s ‘virtual walls’ enable shoppers to order products by using their mobile phones to scan barcodes and QR codes, whereas Amazon’s store will allow people to get their hands on its Kindle readers in an effort to boost sales.

We think this could be the start of a trend. Online retailers who need to get a product in customers’ hands may develop a high street presence to do so.

Current retailers with property portfolios, who don’t always need to show you the actual product, (think music, films, groceries and anything you buy regularly), will create more inventive ways of enabling online purchases. Importantly we believe that the new online purchase options will increasingly be anchored with a High Street presence of some form.

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