Amazon to open offline department stores

With the outbreak and spread of the epidemic, offline physical retail stores around the world have been affected to varying degrees, and the business situation is not optimistic. However, Amazon plans to open an offline retail department store under such circumstances.

The move reflects a subtle shift in strategy for Amazon, which has tried opening physical stores before, but has so far focused on offering specific merchandise to customers in its dozens of existing stores. Now Amazon is launching its department store plan, which would be a major change in the company's foray into physical retail.

It is reported that Amazon Department Store will not be like JC Penney or Macy's, but will adopt the business model of grocers Aldi and Trade Joe's. The first stores will be set up in California and Ohio, and like Aldi and Joe 's , they will display and sell a large number of Amazon's own brand products.

Amazon's path to physical retail stores

Amazon has been experimenting with physical retail stores for years , but has been slow to develop. Its first bookstore opened in Seattle in 2015 , offering the usual selection of books and magazines, as well as ads for Fire tablets, Echos, and various Amazon products and services. Today, Amazon has only 24 physical stores.

Amazon then opened its first Amazon Go convenience store in 2018. These stores are partially automated and allow customers to check out without cashiers or self- checkout machines . Perhaps because of the complex technology behind it, there are currently only 23 such stores in the United States.

In addition, Amazon Fresh , which was first launched in August 2020 , only has 15 stores to date .

Amazon 's opening of physical stores is significant

By attracting passersby through physical stores , Amazon can introduce itself to customers who haven't yet engaged with its e-commerce business . Physical stores also allow people to actually touch, feel and try out products - a huge benefit to sales in certain categories , such as fashion apparel .

In addition, offline physical stores also facilitate the return and exchange services of its e-commerce business . Most importantly , these stores of Amazon can provide a new treasure trove of data to deeply study customer browsing and purchasing behavior , which is of great significance to its future development .

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