Link to Washington Post/Bloomberg article from February 6.
This seems to be a boutique store, an answer to Apple's stores (where customers are snatching up iPads) and Barnes and Noble's (where customers may try out Nooks, and where they they may browse pBooks and sample books on their Nook).
I'm wondering if Amazon will have any special advantage in stocking their stores with books, having as they do so much data on which books (including thousands not available in brick-and-mortar stores) sell in which markets and when.