Spotlighting small businesses

Facebook (FB) recently opened pop-up stores inside nine Macy’s (M) store locations across the United States for the holiday season. This marks the first time that Facebook has opened a physical retail outlet.

Facebook says its pop-up stores will showcase products from 100 small businesses and brands using its digital services to grow sales. Tens of millions of small businesses have a presence on Facebook through Facebook Pages profiles. Amazon (AMZN) also has been opening physical stores. The company’s $13.7 billion purchase of Whole Foods gave it around 500 stores. It has continued to open more stores, mostly under its AmazonGo and Amazon 4-star brands.

Facebook Joins Amazon with Physical Retail Locations

Amazon showcasing its hardware products

While Amazon is using its retail outlets to promote its hardware products such as the Echo smart speaker, Facebook makes no mention of using its shops at Macy’s locations to push its recently released Portal video-calling device.

What’s notable about Facebook’s move with physical store outlets is that it seems to follow a trend of its emerging fierce competitor, Amazon. According to eMarketer, Amazon is steadily growing its share of digital ad spending in the United States, threatening the foundations of ad-funded companies Facebook and Google (GOOGL).

Product search begins on marketplaces

In addition to Amazon, other digital services companies that have been opening physical locations include Alibaba (BABA) and JD.com (JD). These Chinese e-commerce companies also compete with Facebook for advertising dollars.

Since Facebook has also expanded into the e-commerce space through its Marketplace service, perhaps running physical stores could help the company gain insights that it could leverage to improve the service.

Recent UPS Pulse studies have shown that an increasing percentage of online shoppers begin their product search on marketplaces rather than on search engines or social networks like Facebook.

Latest articles

On Tuesday, Tesla (TSLA) cut the prices of its vehicles to standardize its global car line-up, according to Reuters.

Yesterday, PayPal (PYPL) announced that it would expand Xoom, which is its international money transfer service, to 32 markets in Europe.

Visa stock has risen about 37% and has outperformed the S&P 500 Index so far in 2019.

16 Jul

What to Expect from Skechers’s Q2 Results

WRITTEN BY Sharon Bailey

Skechers (SKX) is set to declare its results for the second quarter after the markets close on July 18. Here's what you should know.

On Tuesday, Canadian Pacific Railway (CP) reported strong second-quarter earnings. The company's top and bottom lines touched a record mark.

16 Jul

What to Expect from Crown Castle's Q2 Results

WRITTEN BY Sushree Mohanty

Crown Castle International (CCI) is scheduled to announce its second-quarter earnings results on Wednesday after the market closes.