Google Winter Wonderlab Gets Very Slow Start

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By Douglas A. McIntyre Published
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Google Inc. (NASDAQ: GOOG) calls the six new stores it has opened to demonstrate its consumer products “Winter Wonderlab.” It is a shame the search company will only have six of them. During a holiday season in which retailers large and small will do whatever they can to attract consumers, the Wonderlab will be lost in the sea of foot traffic. Google has gone too small with the project, which will get it a day of publicity, but little more.

The Winter Wonderlab will have what is hardly even a modest selection of product: the Nexus 7 tablet, Chromecast (which allows people to send video from one device to another), the Chromebook PC and Google Play, the online equivalent of Apple Inc.’s (NASDAQ: AAPL) App Store. Google Play is shopped by millions of people online, so it is a wonder that Google has elected to show off the online store within its physical ones.

The Wonderlab locations are in New York, Washington D.C., Chicago, New Jersey, Sacramento and Los Angeles. Some of the stores, like the ones in Westfield Garden State Plaza in New Jersey and Westfield Annapolis, Md., have little foot traffic, compared to other places in the same cities. Google must have chosen the places late in the year, when precious store locations have already been taken.

Another puzzling aspect of the Google decision is that Wonderlab is up against dozens of Apple Retail Stores in dozens of states. Even Microsoft Corp. (NASDAQ: MSFT) has nearly 100 stores in the United States. And all of these are dwarfed by hundreds of Best Buy Co. Inc. (NYSE: BBY) locations and other major retailers that carry consumer electronics, including those from those tech companies that have opened their own.

Wonderlab might be an experiment hatched by Google as a means to see if physical stores are an alternative to selling its products online or through other retailers. If so, it is a sorry one. Come “Play. Create. Chill.” the Google promotion for the Wonderlab says. If you can find one.

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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