Amazon Plans to Open Large Retail Locations Akin to Department Stores

[Mike Mercury]

Online shopping pioneer wants a larger retail presence to sell clothing and household items and facilitate exchanges

https://www.wsj.com/articles/amazon-...es-11629330842

Amazon.com Inc. AMZN -1.26% plans to open several large physical retail locations in the U.S. that will operate akin to department stores, a step to help the tech company extend its reach in sales of clothing, household items, electronics and other areas, people familiar with the matter said.

The plan to launch large stores will mark a new expansion for the online-shopping pioneer into bricks-and-mortar retail, an area Amazon has long disrupted.

Some of the first Amazon department stores are expected to be located in Ohio and California, the people said. The new retail spaces will be around 30,000 square feet, smaller than most department stores, which typically occupy about 100,000 square feet, and will offer items from top consumer brands. The Amazon stores will dwarf many of the company’s other physical retail spaces and will have a footprint similar to scaled-down formats that Bloomingdale’s Inc., Nordstrom Inc. JWN -2.31% and other department-store chains have begun opening, the people said.

Amazon’s plans represent an evolution in the company’s efforts to move into bricks-and-mortar retail after years of taking market share from big-box operators—moves that helped to push many into bankruptcy. The company’s growth in online shopping helped accelerate the fall of mall operators and other once-potent physical-store empires. Amazon is now the largest seller of clothing in the U.S., surpassing Walmart Inc., according to Wells Fargo & Co.

Amazon is pushing into an area that has struggled for decades. Department stores were once big, exciting places to shop, where consumers could find everything from toaster ovens to evening gowns under one roof. But they have lost out to discounters, fast-fashion retailers and online players. A generation ago, department stores comprised 10% of retail sales, excluding automobiles, gas and restaurants, according to estimates by the consulting firm Customer Growth Partners. So far this year, they account for less than 1%.

Their troubles worsened last year during the depths of the Covid-19 pandemic, when J.C. Penney, Neiman Marcus Group Inc., Lord & Taylor and Stage Stores Inc. filed for bankruptcy. J.C. Penney and Neiman Marcus emerged from court protection under new owners. Lord & Taylor now sells only online, and Stage Stores liquidated.

Analysts and industry executives aren’t counting department stores out just yet. Chains including Macy’s Inc. and Kohl’s Corp. are expected to report strong sales Thursday as shoppers restock their closets after reducing clothing purchases last year.

“People are absolutely returning and shopping in department stores,” John Idol, the chief executive of the Michael Kors parent Capri Holdings Ltd. told analysts on a conference call last month.

Amazon approached some U.S. apparel brands roughly two years ago with the idea of opening large-scale stores that would showcase their products, a person familiar with the matter said.

An expanded store footprint would enable Amazon to offer consumers a bevy of items they could try out in person before deciding to buy. That would be particularly beneficial in apparel, which can often be a guessing game for customers shopping online because of size and fit concerns. It would also give customers even more instant gratification than the quick shipping offered by Amazon for online purchases.

While physical stores took a hit during the pandemic as people sheltered at home, foot traffic has gradually returned, although it remains below 2019 levels, according to ShopperTrak, which uses cameras to count traffic in U.S. retail stores.

Amazon opened its first physical store in 2015, a bookstore in Seattle. It tried to set the stores apart from competitors by providing discounts to Amazon Prime customers, offering its own devices for testing and sale, and creating a highly curated selection of books based on a ratings system.

Amazon now operates more than 20 bookstores throughout the country, as well as more than two dozen Amazon 4-star stores, outlets that sell gadgets from electronics to kitchen products. The 4-star stores have typically been around 4,000 square feet. Two years ago, the company said it would close many “pop-up” stores it had opened in malls. The small shops showcased such devices as smart speakers, tablets and Kindle e-readers.

[DJ_Critterus]

So, they are trying to get a monopoly and force wally world out of business. When will the anti-trust laws come into play with Amazon and hell, even big tech?

[MadInNc]

Wait till they get “looted” in Ca. Makes their driver thefts minimal I’ll bet

[DJ_Critterus]

Originally Posted by MadInNc

Wait till they get “looted” in Ca. Makes their driver thefts minimal I’ll bet

You know somebody will shit on the sales floor, too.

[ratflinger]

Originally Posted by DJ_Critterus

You know somebody will shit on the sales floor, too.

[Mike Mercury]

Originally Posted by DJ_Critterus

...somebody will shit on the sales floor, too.

that's how you end up getting a govt check, and a couple boxes of

mail-in ballots.

[DJ_Critterus]

Originally Posted by Mike Mercury

that's how you end up getting a govt check, and a couple boxes of

mail-in ballots.

with very nice weather.......

[Raazor]

Didn't read

[DJ_Critterus]

Originally Posted by Raazor

Didn't read. too busy shitting on the sales floor

[Rikki Z-06]

Originally Posted by DJ_Critterus

[dvarapala]

Originally Posted by MadInNc

Wait till they get “looted” in Ca. Makes their driver thefts minimal I’ll bet

Originally Posted by DJ_Critterus

You know somebody will shit on the sales floor, too.

Amazon is far too smart to open any retail locations in Oakland or San Francisco.

[vtelvr]

Oh…you mean the kinds of places they have singlehandedly put out of business??