AMAZON GOES TO OPEN SEVERAL PHYSICAL RETAIL STORES IN THE USA
Amazon.com is planning to open several large physical retail sites in the US that will operate as department stores. The Wall Street Journal is citing trusted sources.
This will be a major step in the development of Amazon's traditional retail business, as the online retailer has been steadily gaining market share from traditional retailers in recent years. The rapid development of online commerce and the growth of Amazon have led to the bankruptcy of several fairly large and well-known shopping center operators.
According to Wells Fargo & Co., Amazon has surpassed leading US retailer Walmart and is now the largest US apparel retailer.
The first Amazon department stores are expected to open in Ohio and California. According to sources, their area will be about 30 thousand square feet (2.8 thousand square meters) - this is less than the area traditionally occupied by department stores (about 100 thousand square feet).
Stores are expected to offer customers major consumer brands, but there is no exact word yet on which ones. Most likely, Amazon will sell a wide range of products under its own brand names, including clothing, furniture, electronic devices and a variety of other goods.
According to the sources, Amazon discussed the possibility of opening large stores with American clothing brands two years ago. Physical stores are especially important for selling clothes because shoppers can try them on before making a purchase decision.
According to ShopperTrak, traditional store traffic in the US, which fell sharply during the pandemic, has gradually rebounded, although it is still below 2019 levels.
Amazon shares gained 0.2% in trading on Thursday. Since the beginning of this year, their cost has decreased by 1.5%.