Amazon Reconsidering Plan to Put Campus in New York City Amazon Reconsidering Plan to Put Campus in New York City – The Wall Street Journal

On principle, government should focus on creating environments attractive to all businesses, not crafting sweetheart deals to lure select entities. Governments should not pick winners or losers, but provide a fair and equal shot at success or failure. In the case of Amazon, New York City and the State of New York gave a significant incentive package that has some lawmakers raising questions.

In response, Amazon is rethinking its commitment to bring $2.5 billion worth of investments and jobs to Long Island City in Queens. Essentially, it may walk away from the reported $3 billion in incentives to choose another site with less local uproar. There were many other places where Amazon probably could receive a good incentives package while making an impact on the local community. But, Amazon went with a pretty strong sweetheart deal. If reports are correct, pay $2.5 billion for $3 billion of government incentives, not including revenues, is not a bad deal.

Amazon is not the first private sector entity to make local government’s bid on attaining their business. The practice is common for sports teams and other corporations seeking incentives to move significant lines of business to new cities. Many sports teams request financing deals from state and local governments, threatening relocation. The economics of these financing projects are highly questionable at best. Some instances are worth it. Sometimes not.

Understandably, city governments and local politicians want the jobs and the tax revenues. The publicity today can propel political careers for years to come, while local taxpayers deal with the financial ramifications. In the case of Amazon, one can reasonably assume much of the required infrastructure upgrades will run over-budget and create great burden to the already congested area. Over a ten year period, will the economic boom be felt only by Amazon or by the taxpayers as well? We will have to wait and see.


Walmart employee app gives physical stores more power – Business Insider


The ability to sell to cash customer is a slight advantage Walmart has on Amazon, but the ability to leverage store inventory as well as distribution inventory is another.

The only problem with the new strategy is the ability of the Walmart workers to effectively satisfy customers. It is no secret Walmart struggles with in-store customer service. The increased engagements may not improve the perception.

As Amazon continues to consider brick and mortar stores, retailers need to figure out how to improve the in-store experience to keep consumers coming back. Amazon is not perfect in its service by any means, but provides convenience.


Amazon Picks NYC, Northern Virginia for Its HQ2 Locations (WSJ)

After reviewing proposals from 238 cities filled with proposed tax breaks and other incentives, Amazon selected two highly affluent cities to house it’s new headquarters. Not many suspected the HQ2 project would lead to more than one location.

As Google previously announced it’s own NYC expansion, it will interesting to see how Mayor de Blasio and re-elected Gov. Cuomo plan to handle further challenge to it’s already overstretched public infrastructure. Taxpayers will probably see their bills increase as investments are made to transportation and housing for 25,000 workers, many not already in the city.

The fanfare is over. Amazon made its decision. Now, the remaining cities will now figure out what is next.