Amazon plans to open department stores in the USA to push its offline distribution
The e-commerce company, founded by Jeff Bezos, plans to open several physical shops which will work as department stores in the United States to help expand the reach of sales in apparel, home goods, electronics and other areas.
Amazon strengthens its network of physical shops. The US company will open department stores in the United States to expand its retail business. The first shops are expected to be located in Ohio and California, according to The Wall Street Journal.
The new commercial spaces will be similar in format to Bloomingdale’s and Nordstrom and will be 30,000 square feet, a smaller dimension than the traditional department stores, which are normally 100,000 square feet.
Amazon’s plans are the fruit of their aim to enter the retail sector. The company’s growth in the digital channel also meant the fall of the department store’s operators as well as other physical shops businesses.
Amazon, the company that started selling books online in 1994, already counts with a distribution network of physical stores such as bookstores or supermarkets located in the United States and Europe. Besides, in 2017, Amazon acquired the US supermarket chain known for selling organic food, Whole Foods Market, for $13,700 million dollar in order to enter the retail business through Amazon Fresh.
Amazon boosts its business through the retail sector
The company is currently facing a transition period. Last February, its founder Jeff Bezos announced he will be retiring as CEO to become executive chairman of the company. He will be succeeded by Andy Jassy, who led Amazon Web Services since its beginning in 2003.
Amazon is the world’s largest e-commerce group as well as one the main fashion distributors in the United States. The Seattle based company has strengthened its position in the fashion business throughout the last years, not only by selling third party brands but also through its growing own brand portfolio.
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