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Amazon is planning to open giant retail places that resemble department shops, in line with a Wall Road Journal report.
The newspaper, citing folks aware of the plans, reported that among the first Amazon department shops are anticipated to be in California and Ohio. The places will take up roughly 30,000 sq. ft, across the measurement of a Kohl’s or T.J. Maxx location, however nonetheless concerning the third of a measurement of a conventional division retailer.
The transfer would mark Amazon’s newest experiment with bodily retail shops after stealing market share within the retail panorama from incumbents with its e-commerce enterprise. The corporate has opened brick-and-mortar e-book shops, grocery shops and cashierless comfort shops lately.
The department shops are anticipated to assist Amazon promote extra clothes and know-how merchandise, in line with the Journal. The newspaper reported the the corporate first began approaching U.S. attire manufacturers about large-scale shops roughly two years in the past, though it is unclear at this level which manufacturers the places would inventory. The e-commerce large additionally plans to promote its personal personal label items.
Amazon’s entry into department shops would put much more strain on an already struggling retail section. J.C. Penney, Lord & Taylor and Neiman Marcus have been among the many retailers that filed for chapter final yr. Nordstrom and Macy’s have been investing closely in an effort to draw new prospects, together with opening smaller format shops.
Amazon didn’t instantly reply to a request for remark from CNBC.
Shares of the corporate have fallen greater than 1% this yr, giving it a market worth of $1.59 trillion.
Learn extra about Amazon’s plans right here.
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