EMERGING TECH
EMERGING TECH
EMERGING TECH
Report: Amazon is planning to get into the department store business
Amazon.com Inc. is branching out again, with reports today saying the company is on the verge of opening several large brick-and-mortar department stores in the U.S.
The company hasn’t confirmed the move, calling the details of a report on the matter in the Wall Street Journal “rumors and speculation,” although the Journal said plans are already in action in the states of Ohio and California.
People familiar with the matter said as yet it’s not certain what will be sold in the stores, but “the company’s private-label goods are expected to feature prominently.” Things may change, but the report said the stores will be similar to other department chains, so it appears Amazon wants to disrupt a market it already helped disrupt when it realized the full potential of e-commerce.
The stores will be slightly smaller than some of the other chains, with each expected to occupy about 30,000 square feet. That’s about a third smaller than some of the larger department stores in the U.S.
Amazon already has brick-and-mortar stores. It currently has 29 convenience stores, most of which are in the U.S. Earlier this year, the company opened its first high-tech, full-size Amazon Fresh grocery store, a rebrand of the Amazon Go stores. It uses sensors and other technology so customers never have to go through a checkout.
The department store market in the U.S. has seen a steady decline over the last decade. COVID-19 and the ensuing lockdowns made matters even worse, with a handful of large chains closing forever, although reports suggest that things are about to change.
Analysts have said that although e-commerce reigned during the unpleasant era when people were sequestered in their homes, folks now want to get back to the high street more than ever. “People are absolutely returning and shopping in department stores,” said John Idol, chief executive of the Michael Kors parent Capri Holdings.
“Amazon knows that the future of retail is multichannel… most consumers still shop using a combination of stores and online,” Neil Saunders, managing director of retail analyst group GlobalData, told the BBC. “Stores will help Amazon do a much better job of showcasing its offer.”
Photo: Simon Bak/Unsplash
A message from John Furrier, co-founder of SiliconANGLE:
Support our mission to keep content open and free by engaging with theCUBE community. Join theCUBE’s Alumni Trust Network, where technology leaders connect, share intelligence and create opportunities.
- 15M+ viewers of theCUBE videos, powering conversations across AI, cloud, cybersecurity and more
- 11.4k+ theCUBE alumni — Connect with more than 11,400 tech and business leaders shaping the future through a unique trusted-based network.
About SiliconANGLE Media
SiliconANGLE Media is a recognized leader in digital media innovation, uniting breakthrough technology, strategic insights and real-time audience engagement. As the parent company of SiliconANGLE, theCUBE Network, theCUBE Research, CUBE365, theCUBE AI and theCUBE SuperStudios — with flagship locations in Silicon Valley and the New York Stock Exchange — SiliconANGLE Media operates at the intersection of media, technology and AI.
Founded by tech visionaries John Furrier and Dave Vellante, SiliconANGLE Media has built a dynamic ecosystem of industry-leading digital media brands that reach 15+ million elite tech professionals. Our new proprietary theCUBE AI Video Cloud is breaking ground in audience interaction, leveraging theCUBEai.com neural network to help technology companies make data-driven decisions and stay at the forefront of industry conversations.
