AMAZON REPORTEDLY PLANS TO OPEN DEPARTMENT STORES IN US

Fri 20 August 2021:

According to The Wall Street Journal, Amazon aims to extend its retail operation by constructing department stores in the United States.

Earlier this week, the online shopping giant surpassed Walmart in total sales to become the world’s largest retailer outside of China.

According to reports, the first department store outlets would open in California and Ohio. They are said to be modeled after Bloomingdale’s and Nordstrom, and sell a variety of home things such as clothing and gadgets.

Amazon has already opened brick and mortar stores, mainly in urban areas. Customers can purchase items without checking out as long as they have an Amazon Prime subscription.

Along with the Amazon brand stores, Jeff Bezos, the company’s founder, previously purchased the upmarket supermarket chain Whole Foods.

Amazon’s foray into department stores comes as traditional brick-and-mortar stores struggled during the coronavirus pandemic. According to The Washington Post, 200 departments stores closed in the last year. Another 800, roughly 50 per cent, are forecast to close by 2025.

According to The Guardian, some observers, such as John Idol, the CEO of Michael Kors parent firm Capri Holdings, claimed after the pandemic, “People are absolutely returning and purchasing in department stores.”