Reports suggest space will operate as a "small-scale" warehouse.

Amazon may be set to make its first foray into bricks-and-mortar customer-facing retail, with the opening of a warehouse space in New York City, catering to festive purchases, collections and returns.

According to a report by The Wall Street Journal, the online retailer will launch the space on 34th Street in time for Christmas. It will operate much like a small-scale warehouse where shoppers can collect, return or exchange online orders. The space will also hold a finite number of products for same-day delivery.


It is reported that the shop could also be used as a showroom for Amazon-branded products, such as electronic goods and jewellery.

Amazon is yet to confirm or deny whether the store will open, but reports suggest that if successful, additional stores could be introduced to other US cities.

The tide has been changing for online-only jewellery and watch retailers, with the likes of Astley Clarke pushing further into retail with concession spaces in leading department stores in the UK and now Neiman Marcus in the US, and Blue Nile also making its store debut this year, with dedicated spaces in Nordstrom.

British pre-owned watch company Watchfinder also made a similar leap into bricks-and-mortar retail, opening its first store in early 2013, with plans to now open a second in the Burlington Arcade in London, as well as locations further north and in Europe.