Google To Open New Brick And Mortar Stores In DC And Santa Monica

Benzinga
03-07

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There's a long way to go to catch up to Apple's (NASDAQ:AAPL) giant retail footprint. However, as part of Google's ongoing expansion into brick-and-mortar shopping, it is opening two more stores to add to its five. One will be in Santa Monica on March 7 and the other in the Washington D.C. area later this year, according to CoStar. 

The Santa Monica store is located at 1460 3rd Street Promenade, just before the Santa Monica Place mall and just a few blocks from the Santa Monica Pier and beach.

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Commercial real estate developer EastBanc has revealed that the tech behemoth plans to occupy about 7,000 square feet at 3235 M St. NW in D.C.’s upscale Georgetown neighborhood, a location EastBlanc owns.

“The arrival of Google not only solidifies the neighborhood’s reputation as a premier hub for innovative shopping experiences and cutting-edge brands but provides many shoppers the first opportunity to touch and feel these incredible products while surrounded by Google experts,” EastBanc principal Philippe Lanier said in a statement.

A Sales And Support Hub

The stores will be Google’s sixth and seventh nationwide—with an Austin, Texas location expected soon followed by others—offering a retail outlet for the public to purchase the company’s products. These include devices, accessories, and merchandise, including phones, tablets, earbuds, smartwatches, Nest smart home products, and Fitbit devices. Like Apple (NASDAQ:AAPL) stores, Google stores offer on-site repair and support services, trade-ins and programs, and educational workshops.

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Big Expansion Plans

Google trails behind the brick-and-mortar retail presence of Apple’s massive network of over 270 physical stores nationwide. Samsung currently has four experience stores. Part of the reason for Google’s fledgling retail operation is that the core of its operation has been its search engine and other platforms it has acquired, such as YouTube. However, that is rapidly evolving with Google and its parent company, Alphabet (NASDAQ:GOOG, GOOGL)), which owns over 200 other companies and is expanding its Main Street presence to showcase and sell its increasing array of products.

Employee Buyouts

Despite this, there has been a lot of movement behind the scenes at Google regarding its hardware products. It recently announced it was offering buyouts to employees in its “Platforms and Devices” unit ahead of expected cuts. That department includes over 25,000 full-time employees globally who work on Android, Chrome, ChromeOS, Google Photos, Google One, Pixel, Fitbit, and Nest. The buyout refers to US employees, amongst other offices.

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Shifting Resources Into AI

As with other tech companies, Google’s restructuring comes as it shifts its focus to AI. A Google spokesperson told CNBC that the buyouts come after the company combined its Android and Pixel divisions last April. Google recently announced it would acquire some of the engineering team from HTC Vive, one of the top virtual-reality headset makers, to “accelerate the development of the Android XR platform across the headset and glasses ecosystem.” 

Google is competing with Apple to combine AI software with physical products and recently introduced Apple Intelligence to its iPhone users. While iPhone sales are Apple’s main money maker, Google’s main revenue hub is through advertising, primarily by selling ad space on its various platforms, such as Google Search, YouTube, Gmail, and Maps. 

Increasing Retail Sales

Google’s Platform and Device division’s revenue rose to $11.63 billion in the fourth quarter, up from $10.79 billion the previous year. As Google expands into physical products, a brick-and-mortar retail presence will help drive customer awareness.

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This article Google To Open New Brick And Mortar Stores In DC And Santa Monica originally appeared on Benzinga.com

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