[fjtorres]

Actually, this store *may* serve one other purpose:
Remember that B&N organized a boycott of Amazon Publishing imprints and titles that was promptly joined by the indie bookstores.
By doing bookstores, Amazon increases the reach of its imprints and serves notice that if b&m refuses to sell their books, they'll get into b&m themselves.

Best way for a small bookstore to avoid getting an Amazon store nearby might be to start carrying those pbooks. They *are* broadly available through the usual distributors.

We'll have to see how this experiment plays out for Amazon.
But now they have *really* given the small B&M stores something to fret over.

Edit:
Btw, Amazon can stock the store straight from their fulfillment center and return slow sellers to the warehouse instead of to the publisher. They should be able to do ship to store and even one hour special order in the store. Given that it's in a mall one could walk in, order a book, go shopping, and pick it up on the way home.

Lots of tricks they can play with this book boutique format.
There's easily room for a few dozen nationally.