The words “Amazon” and “retail” are usually used together in just one context: when people talk about how Amazon is killing retail. 🔪
The e-commerce giant’s latest plan, however, positions for a lot more direct competition with Target, Best Buy, Walmart, and other big box retailers. That’s because Amazon plans to open brick-and-mortar stores to compete with traditional department stores.
According to close sources, Amazon will open several physical locations. The first stores could be in Ohio and California, coming in at about 30,000 sq ft. That’s smaller than a “typical department store,” but Amazon is far from typical.
In the last few years, Amazon has subtly advanced into brick-and-mortar with its acquisition of Whole Foods, trials of its checkout-free “Amazon Go” stores, and return partnerships with Kohl’s. However, the company’s latest plan is a much bigger push than its previous ventures. Opening brick-and-mortar stores could even accommodate the company’s shipping and “last-mile” efforts.
The news sent big-box retailers lower, with $TGT falling 0.88% and $BBY down 0.31%. $AMZN also fell today, dipping -0.4%.