Amazon is expanding its business offline. With the advent of department store-type Amazon stores, the existing department store industry, which was hit in the aftermath of last year’s coronavirus, seems to be very nervous.
The Wall Street Journal (WSJ) reported on the 19th (local time) that Amazon plans to open large offline stores such as department stores in the U.S., citing officials familiar with the issue. Amazon’s first department store is expected to be California and Ohio. Various items, including clothing and home appliances, will be sold, and Amazon’s own brand products as well as high-end brands are likely to be introduced. The store is 30,000 square feet (about 2,787 square meters), which is larger than other offline retailers, and smaller than other department stores such as Bloomingdale and Nordstrom, the WSJ said.
Amazon’s entry into department stores is interpreted as Amazon’s move to expand its influence in the offline market, which started online. Amazon, which was founded as an online bookstore in 1994, has recently opened offline bookstores, grocery stores, and convenience stores one after another, making the distribution industry nervous. Amazon also acquired a food chain called Whole Food Market in 2017. Amazon is said to have started discussing the establishment of large-scale offline stores in contact with U.S. clothing brands more than two years ago.
Amazon believes that the expansion to offline areas will be particularly helpful in selling clothing and high-tech products. It can also be used as a showcase for online products and will bring innovation by collecting customer data and providing new shopping experiences, WSJ predicted.
However, Amazon’s plan to open a department store-type store has not been finalized and there is a possibility of change, sources said.
