Amazon is to open its first physical shop as it looks to showcase its Kindle.

The etailer plans to open a physical store in its home town of Seattle “in the coming months”, according to Reuters.

Analysts believe the online retail giant is looking to puts its range of technology products on display in a move inspired by Apple’s prowess in stores.

Cowen & Co analyst Jim Friedland said online retail figures had hinted Amazon was looking at gaining a physical presence at a conference run by the National Association of Real Estate Investment Trusts in late 2011.

Analysts believe Amazon’s line of Kindle devices may perform well if customers can test them before purchase.

Friedland said: “The primary goal of the test is to determine if a physical retail presence can accelerate sales of Kindle devices and follow-on consumption of digital content at an attractive return on invested capital.”

Amazon-owned retailer Quidsi opened its first physical store last year in New York to sell cosmetics and perfumes under its BeautyBar brand.

Friedland warned the store investment could dent returns. He said that Amazon’s return on investment capital is typically around 35% and it would have to work hard to maintain this, although returns are currently lower due to a number of large investments.

An Amazon spokeswoman declined to comment.

Topics