Rick Caruso runs specialty browsing malls that are full of luxury stores and kids. They’re on a different path to Amazon’s mail delivery business, and so the mega-giant is no real threat to his interests.
Van Cleef and Arpels doesn’t need to worry about Amazon either, but this doesn’t mean that everyone else can emulate them on their own road to success, or adjust their business model accordingly.
At a time when retail stores have been closing due to the “Amazon effect,” billionaire mall owner Rick Caruso says “Amazon has been great for retail.”
“What (Amazon has) shown us is a path to success,” the owner of The Grove and The Americana malls in Los Angeles told CNBC’s Squawk Alley on Monday. “Competition just on price doesn’t work. You have to compete on knowledge. You have to compete on knowing your customer. You have to compete on being convenient.”
Yep. Knew it.
Amazon’s much-heralded convenience store of the future, Amazon Go, may seem like a crazy experiment. But the company plans to open as many as six more of these storefronts this year, multiple people familiar with the company’s plans have told Recode.
Some of the new high-tech stores are likely to open in Amazon’s hometown of Seattle, where the first location is based, as well as Los Angeles, these people said. It’s not clear if Amazon will open up Go stores in any other cities this year.
In Los Angeles, Amazon has held serious talks with billionaire developer Rick Caruso about bringing a Go store to The Grove, his 600,000-square-foot outdoor shopping Mecca, two of these people said.