Amazon plans to open large bricks-and-mortar retail shops

Amazon plans to open large bricks-and-mortar retail shops.

If you’re thinking about buying children’s toys, gadgets, books or electrical goods, what’s the first place you think of? The likelihood is it’s probably the one-stop shop that is Amazon, rather than high street shops which specialise in these products.

Amazon.com Inc is planning to open large physical shops in the United States that will operate similar to department stores in the US as the e-commerce giant expands its footprint into brick-and-mortar retail.

Some of Amazon’s first department stores are expected to open in Ohio and California, the report from Reuters said, adding that the shops will be about 30,000 square feet in size and offer products from well-known consumer brands.

Sales at large department stores, which were shopping havens until the entry of online players especially Amazon, have since taken a beating, even leading to the bankruptcy of once-popular retail chains such as Sears, Neiman Marcus, and J.C. Penney.

Amazon, which dominates the online shopping space, had made its biggest bet in the brick-and-mortar format with its acquisition of upscale grocer Whole Foods in 2017.

Amazon also experimented with small physical stores, selling books and food in at least 13 U.S. states including California, Colorado, and Washington.

The e-commerce giant has benefited from a surge in online purchases from homebound shoppers as COVID-19 forced millions to stay indoors over the past year. Traditional retailers also saw online sales surge, though total sales fell as they were forced to shut stores, which make up the bulk of their revenue.

Steady vaccine rollouts are now encouraging more Americans to return to brick-and-mortar stores to buy clothes, footwear, and electronics.

Department store chains Macy’s Inc and Kohl’s Corp beat Wall Street estimates for second-quarter sales, and also raised their forecasts on full-year revenue and profit on Thursday as buyers came back to stores, spending on perfumes, shoes, and clothes.

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