What’s old is new again.
Amazon has killed off brick and mortar stores as well as malls over the past 2 decades. Many of those malls have been converted into Amazon distribution centers.
The WSJ reports that Amazon will open department stores to sell clothing, household items, and Amazon devices. They will also facilitate returns and exchanges. Launch stores are expected to be in California and Ohio.
The 30,000 square foot stores will be smaller than traditional department stores, but will be over 7 times larger than the “Amazon 4-star” stores that currently operate.
Those stores have digital price tags that match Amazon’s constantly changing online price algorithms and I assume that the new department stores will have those as well. That will keep them a lot more nimble than traditional department stores.
I don’t understand the appeal of shopping in a store, but as a millennial I’m also not in the target market for this venture. Clearly Amazon feels that they will be able to reach enough customers that won’t shop online to make it worth their while.
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