Amazon is entering the field of physical retail, this time it plans to open similar department store locations in Ohio and California, selling clothing and electronic products. Wall Street Journal.
This is Amazon’s latest physical store experiment. Amazon has steadily expanded its physical retail business through Amazon Go, Amazon Books, Amazon Fresh, Amazon 4-star and Whole Foods stores.
The Wall Street Journal pointed out that department stores may feature Amazon’s own brand products and other top brands.
According to reports, the launch of the department store is a “life cycle” moment, as the University of Washington professor and writer Margaret O’Mala put it Pointed out on TwitterConsider that Amazon’s growth in e-commerce has helped many long-established physical hypermarket operators such as Sears and JC Penney go bankrupt.
social circle https://t.co/t7jeGAnOjS
— Margaret O’Mara (@margaretomara) August 19, 2021
Guru Hariharan, a former Amazon manager who is currently CEO of CommerceIQ, said that the demise of traditional brick-and-mortar retailers is due to their inability to successfully manage three metrics: price, choice and availability.
“The losers can’t figure out how to compete with Amazon on price, they don’t have the technology to promote the correct classification, and they don’t have the proper mechanism to ensure that the correct product is in stock,” he said in a statement. Email to GeekWire.
Hariharan added that although Amazon has a dominant position in e-commerce, it still plays a small role in physical retail.
“It is important to remember that e-commerce still only accounts for 20% of the entire retail market,” he said. “Physical retail is a 4 times bigger opportunity. With the arrival of the new CEO, they will hope to promote new experiments to accelerate their future growth.”