Amazon after being the killer of physical retailers across the country, especially during the recent COVID 19 pandemic, did not open its own department stores.
Currently, Amazon has a few of its own brick-and-mortar locations and a few branded stores the company acquired through Whole Foods. Though these are on a much smaller scale, it is going to be a huge shift for the e-commerce giant to own a department store of its own.
Going by The Wall Street Journal report, it is going to be the biggest ground-up push into physical retail which is certainly a massive sector of the economy.
One should not expect Amazon to follow the footsteps of JC Penney or Macy’s, though it seems likely to follow the path taken by grocers Aldi and Trader Joe’s.
We can expect the Amazon stores to be one-third the size of most existing stores that are around 100000 square feet. While the first one is all set to appear in California and Ohio. Amazon’s department stores will heavily feature Amazon’s private-label goods.
Amazon has been in the brick-and-mortar retail stores for years, though progress has been slow. Earlier in 2015, the e-commerce giant opened its first bookstore in Seattle and offered the usual books and magazines alongside Fire tablets, Echos, and plenty of advertisements for various Amazon products and services. Currently, it has around 24 Amazon Books physical locations.
It still remains to be seen how successful Amazon will be in this venture, especially with the FDA turning its attention to the growing power of online platforms. The eCommerce giant has already brushed with the FTC over its Whole Foods acquisition, though its slow pace of expansion in brick and mortar has kept regulators off its back.