DISCUSSION
Should Zappos take steps into the hospitality world?
Written by RetailWire Staff
Photo: Zappos
Zappos is known for experimentation. But the initiative the popular online shoe retailer is now mulling goes beyond an experimental take on shoe sales — it’s a move that would take the company far from the world of footwear.
At a summit in Austria, Zappos CEO Tony Hsieh announced that the company was considering moving into the hospitality industry, although stopping short of announcing a Zappos hotel brand, according to Skift. The company has toyed with the idea of opening hotels in the past. Mr. Hsieh tweeted in 2014 that a 2019 incarnation of Zappos could include a hotel focused on service, culture and community, or a Zappos airline.
Zappos is not the only retailer to plan a move into hotels. Williams & Sonoma-owned home furnishings retailer West Elm recently announced the launch of a line of its own boutique hotels, designed, promoted and furnished by the retailer. Restoration Hardware recently opened a hotel and high-end gym. Equinox has announced plans to open a fitness-themed hotel chain, as well.
The appeal of hotels for a home furnishings retailer is obvious. The hotels, while filling a need for the traveler, can also act as a showroom for the furniture and other items that the retailer sells. But the connection between Zappos’ core business and the hospitality space is not immediately apparent.
The prospect of hotel ownership seems like an especially gutsy move for Zappos, a pure-play e-tailer with no physical storefronts. But some retailers have been successful lately with concepts that have gone outside of their core areas of business.
Apparel retailer Urban Outfitters, for instance, plans to open more restaurants (including in-store restaurants) according to Bloomberg, after its purchase of a pizza chain last year, which some found perplexing.
While not a great deal of information is forthcoming, a Zappos hotel concept may present the opportunity to create the type of experiential selling environment that is growing popular with Millennials.