Amazon to open large department store like physical retail locations in the US: Report

Amazon reportedly approached few US apparel brands with the plan two years back. (Representative image)

E-commerce giant Amazon is planning to open several large physical retail stores across the US, the Wall Street Journal reported. The locations will be similar to department stores and are aimed at extending sales in the clothing, electronics, and household items segment, sources told the paper.

This would be a new step in the bricks-and-mortar retail area for the online shopping giant. Sources said stores sized around 30,000 sq. ft can be expected in places like California and Ohio.

Moneycontrol could not independently verify the report.

Notably, while sized smaller than other department store chains, the Amazon stores would be bigger than other physical stores and would follow a format similar to a scaled-down Nordstrom or Bloomingdale’s, the sources added.

While they are expected to offer top-level private-label consumer brands, which particular brands are not yet clear, and sources said plans could change.

One source said Amazon approached few US apparel brands with the plan two years back.

The move into a struggling sector of bricks-and-mortar retail “represents an evolution for the company which helped push many (physical retailers/malls) into bankruptcy”, the report noted. The COVID-19 pandemic further worsened the outlook for the sector – witnessing the downfall of JC Penny, Neiman Marcus Group, Lord & Taylor, and Stages Stores – the last of which has now moved fully online.

The foray is expected to encourage customers to “try out in person” before buying, particularly in apparel, and “better engagement” with customers, it said.