Amazon.com (AMZN) plans to open its first brick-and-mortar store, Dow Jones reported. It will open on 34th Street in Manhattan across the street from the Empire State Building just in time for this year's holiday season.
The experimental pop-up store will function as a small warehouse, holding limited inventory for same-day deliveries only in New York. The store may also host tech showcases for items such as Kindle e-readers, Fire phones and Fire TVs.
Customers may order items online and then pick them up that same day in the store.
Amazon stock was down more than 2 percent in trading Thursday, amid a broad market sell-off on Wall Street.
An Amazon spokesperson declined to comment to CNBC about the project, except to say, "We have made no announcements about a location in Manhattan."
The company risks increasing costs related to retailing such as paying leases and hiring workers. But if the store is successful, it may set a precedent for additional stores in other cities.
Amazon has been researching and scouting a possible store for several years, said a person familiar with the project. Two years ago, the company went as far as scouting spots in Seattle, where it is headquartered.
"Same-day delivery, ordering online and picking up in-store are ideas that are really catching on. Amazon needs to be at the center of that," Matt Nemer, a Wells Fargo analyst, told Dow Jones.
Other companies such as Walmart (WMT) and Home Depot (HD) have already incorporated this order-online, pick-up in-store model. Clothing company Bonobos opened 10 stores in 2011 and plans to expand to 40 stores by 2016.
Amazon tried brick-and-mortar experiments before, such as Kindle vending machines that sold tablets and e-readers in malls.
-DailyFinance staff contributed to this report.
The 7 Hot Toys Your Kids Will Want for Christmas This Year
Amazon Gets Real, to Open First Brick-and-Mortar Store in NYC
The Apple Watch doesn't come out until 2015, and it's going to cost you at least $350. The VTech Kidizoom Smartwatch is out now and only costs $60. It's clear which smartwatch is going to wind up dominating the market.
Fun idea: When you give this to your kid, perform Christopher Walken's monologue from "Pulp Fiction."
When Kevin Eastman and Peter Laird wrote a comic book in the mid-'80 about giant mutated turtles who were also teenage ninjas, they probably didn't think they were launching a multimedia franchise that would still be selling movies and toys 30 years later. But here we are in 2014, and the turtles are coming off a blockbuster movie -- and they're once again expected to be a top-selling Christmas toy.
Toys R Us thinks your kids will want this "Stretch 'N' Shout Leonardo," which takes the Turtles' stoic, katana-wielding leader and gives him the ability to. .. stretch his arms and scream really loud? OK. Meanwhile, Kmart has the Teenage Mutant Ninja Turtles Lil' Dune Racer, which is basically just a powered kid's bike with some Ninja Turtle stickers slapped on. It costs $162 and has a top speed of 3.5 mph.
Really, these are some weak offerings on the Ninja Turtles front. When I was a kid, I had a little tank that launched pizza discs. Now that was a toy.
Here's another late-'80s/early-'90s toy franchise that's seeing a second life thanks to Michael Bay. The "Transformers" movie franchise is now in its fourth film, swapping out America's Sidekick Shia Laboeuf for America's Knucklehead Drinking Buddy Mark Wahlberg. But more importantly, the fourth film finally got around to introducing Grimlock ("me Grimlock!"), the Transformers' truculent dinosaur robot.
We've got two Tranformers: Grimlock! toys appearing on this year's lists. Toy R Us has the Stomp and Chomp Grimlock ($70), which transforms between dinosaur and robot and comes with a bonus Optimus Prime toy to ride Grimlock into battle. Kmart's Grimlock toy is only $20, but you get what you pay for: It's just Grimlock in robot form, with a button that lets it make some noises. What good is a Dinobot that can't transform into dinosaur form? If you get this for your son, he'll spend three minutes trying to get it to turn into a dinosaur and then throw it aside.
Doc McStuffins –- who, you may recall, provides medical care to stuffed animals –- appeared on the list last year, with a tricked-out check-up center. But this year the good doctor is really stepping up her game, making house calls with the Doc McStuffins Get Better Talking Mobile Cart, basically a pull-along ambulance ($50). It comes with a siren, an EKG machine, a gurney and even a little ladder (I guess to rescue stuffed animals trapped in tiny burning buildings).
Next time someone trots out that tired old "It's the future, where's my flying car?" line, show them this $55 flying Hot Wheels Street Hawk Remote Control Flying Car. Or better yet, buzz them with it like Maverick from "Top Gun" doing control tower fly-by while screaming "Is this futuristic enough for you?!"
The Zoomer Dino appears on all three retailers' lists, so it looks like it will be one of the season's most in-demand toys. It also sounds like it will be completely awesome:
"Boomer can detect when you're nearby and interacting with him. But watch out! Just like a real Dino he can get angry, spin around, chomp and roar! Using True Balance Technology, Boomer perfectly balances on two wheels as he roams freely, exploring your home. ... He might even let out dino-sized burps and farts!"
So imagine the T-Rex from Jurassic Park, only he's wearing roller skates, and also he's burping and farting all over the place. It's $100, and I just ordered it.
This is the one.
The only other toy to appear on all three lists, the Snow Glow Elsa Doll (from the hit Disney movie "Frozen") is already looking like this year's Tickle-Me Elmo. At Walmart, it sold out online while I was writing this article. Kmart says it won't have it in stock until Oct. 30. Toys R Us still has it in stock, but it's already set a limit of five per customer.
All this in September.
If someone winds up getting pepper-sprayed at a toy store this December, you can bet that it will be over this doll. It lights up and sings "Let It Go" -- and your kid probably wants it. You can hunt it down now and pay $35, or wait until December and pay $200 on eBay (EBAY).