Amazon to open department stores in the U.S.


August 30, 2021 | By RetailME Bureau

Online retail giant, Amazon has announced plans to open department stores in the U.S., expanding its brick-and-mortar presence.

According to the Wall Street Journal, some of the first stores are expected to be located in Ohio and California. The new retail spaces will be around 30,000 square feet, smaller than most department stores, which typically occupy about 100,000 square feet, and will offer items from top consumer brands.

Currently, Amazon operates curated 4-Star stores, as well as AmazonGo stores, but the new retail outlet will dwarf many of the company’s other physical retail spaces and will have a footprint similar to scaled-down formats that Bloomingdale’s Inc., Nordstrom Inc. and other department-store chains have begun opening.

In the last few years, US and UK retailers such as Toys R Us, Muji USA, Debenhams and Maplin have gone under for numerous reasons, however, Amazon’s move into big box retail might not really be catastrophic, according to analysts.

“Department stores did not die because the concept of a store that stocks many goods is irrelevant. If this were so a retailer like Target, which is essentially a department store for the modern era, would not be thriving. Traditional US department stores have been the author of their own demise by their failure to innovative and adapt,” said Neil Saunders, Managing Director of Retail Analysts GlobalData.

Traditionally, department stores were the best collaboration that the industry saw between retailers. “Considering the business model isn’t working anymore, the industry will have to think of new concepts and innovative ways to work together. I think we are going to see in the future where like-minded retailers that offer complimentary products to each other, collaborating to create larger retail experiential environments. I think a superstore that has complimentary products by three or four retailers would work,” said Jayant Ganwani, CEO of Lals Group.

While traditional retailers are seeing value in going online,  e-commerce players are increasingly discovering the value of having a physical presence. E-commerce top guns like Amazon and Ali Baba have realised it for a while and have been adopting an omnichannel approach to reach its customers where they want to reached.

 

 

Previous Article Next Article

SHARE

YOU MAY ALSO LIKE /


Dr. Dhananjay Datar Chairman & Managing Director ADIL Trading Co. LLC

Dr. Dhananjay Datar Chairman & Managing Director ADIL Trading Co. LLC holds 

Continue Reading

February 29, 2024 | By Rupkatha B
Hani Weiss, Chief Executive Officer, Majid Al Futtaim Retail

In 1995 regional retail conglomerate Majid Al Futtaim introduced Carrefour to the 

Continue Reading

February 26, 2024 | By RetailME Bureau
Prashant Parameswaran, Managing Director and Chief Executive Officer of Tata Consumer Soulfull

Tata Soulfull, a leading name in the ‘good-for-you’ snacks and breakfast cereals 

Continue Reading

February 22, 2024 | By Rupkatha B
Jean-Luc Graziato, Chief Commercial Officer of Majid Al Futtaim – Retail and Alia Al Harmoodi, Acting CEO of the Environment, Health and Safety Agency

Majid Al Futtaim – Retail, which holds the exclusive franchise to operate 

Continue Reading

February 20, 2024 | By RetailME Bureau
Krishna Dhanak, Managing Director, Alpen Capital

In an exclusive interview Krishna Dhanak, Managing Director, Alpen Capital shared insights 

Continue Reading

February 19, 2024 | By Rupkatha B
Majed M. Al-Tahan, Co-founder & Managing Director, Danube Online

As digital transformation across the retail industry continues to accelerate, the expectations 

Continue Reading

December 19, 2023 | By RetailME Bureau
Frederic Levy-Perrault, CEO, Al Raya Supermarket

Saudi Arabia-based grocery retail chain Al Raya Supermarket serves over 100,000 customers 

Continue Reading

December 15, 2023 | By RetailME Bureau
Ahmad AR. BinDawood, Chief Executive Officer, BinDawood Holding

BinDawood Holding has a rich Saudi heritage, spanning over 50 years, 38 

Continue Reading

December 13, 2023 | By RetailME Bureau
Majid Al Futtaim Retail commits to Collaborative Impact Goals at COP28

Majid Al Futtaim Retail, which owns the exclusive rights to operate Carrefour 

Continue Reading

December 8, 2023 | By Rupkatha B
BinDawood Holding Company earns Honorary Shield for Compliance Excellence

BinDawood Holding Company has earned an Honorary Shield, a distinguished recognition by 

Continue Reading

December 6, 2023 | By RetailME Bureau
First Movers Coalition for Food to create up to $20-bn value chain for sustainable farming

The World Economic Forum, with support from the Government of the United 

Continue Reading

December 5, 2023 | By RetailME Bureau
Food consumption in the GCC to grow at a steady pace

Food consumption in the GCC is set to grow at a CAGR 

Continue Reading

November 29, 2023 | By RetailME Bureau




Download Images RetailME Magazine