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Amazon Plans to Open Large Retail Locations Akin to Department Stores

Posted on 8/19/21 at 10:15 am
Posted by Paul Allen
Montauk, NY
Member since Nov 2007
77656 posts
Posted on 8/19/21 at 10:15 am
LINK

quote:

Amazon.com Inc. plans to open several large physical retail locations in the U.S. that will operate akin to department stores, a step to help the tech company extend its reach in sales of clothing, household items, electronics and other areas, people familiar with the matter said.


quote:

The plan to launch large stores will mark a new expansion for the online-shopping pioneer into bricks-and-mortar retail, an area Amazon has long disrupted.


quote:

Some of the first Amazon department stores are expected to be located in Ohio and California, the people said. The new retail spaces will be around 30,000 square feet, smaller than most department stores.


Remember all the “brick and mortar retail is dying” talk the last few years? Interesting timing with this considering online sales, not only for Amazon, but most retailers continues to grow every year.
Posted by Sun God
Member since Jul 2009
49484 posts
Posted on 8/19/21 at 10:16 am to
The only thing Idiocracy got wrong was using Costco instead of Amazon
Posted by idlewatcher
Planet Arium
Member since Jan 2012
91785 posts
Posted on 8/19/21 at 10:16 am to
Just learned last night that Amazon even has their own line of mattresses
Posted by SouthernStyled
Member since Apr 2021
1307 posts
Posted on 8/19/21 at 10:18 am to
quote:

The only thing Idiocracy got wrong was using Costco instead of Amazon



They will eventually merge

Costazon.
Posted by RebelExpress38
In your base, killin your dudes
Member since Apr 2012
14176 posts
Posted on 8/19/21 at 10:20 am to
Are we going backwards? This is like when Uber tried to create a version where they picked up multiple people along the same route

Almost like a bus route
Posted by dewster
Chicago
Member since Aug 2006
26324 posts
Posted on 8/19/21 at 10:22 am to
The Amazon fresh stores are okay. I really like their retail stores that feature only products rated 4 stars and up.

Interested in seeing their large department store.
Posted by Lsuhoohoo
Member since Sep 2007
101831 posts
Posted on 8/19/21 at 10:24 am to
quote:

Amazon.com Inc. plans to open several large physical retail locations in the U.S. that will operate akin to department stores


Do people want this? I'm no Bezos so I guess I don't understand the attraction to the added costs of operating brick and mortar. The online market was how Amazon was able to undercut the Sears and Kmarts of the world. The online format is what consumers chose. It would seem far more desirable on a broad scale yo consumers to shop on their phones from home and have their products delivered to their door in 2 days rather than carve out thr time to go browse a department store.
Posted by BobABooey
Parts Unknown
Member since Oct 2004
15848 posts
Posted on 8/19/21 at 10:25 am to
Worked great when Gateway 2000/Gateway opened their brick and mortar “country stores.”
Posted by fr33manator
Baton Rouge
Member since Oct 2010
132926 posts
Posted on 8/19/21 at 10:29 am to
quote:

Are we going backwards? This is like when Uber tried to create a version where they picked up multiple people along the same route Almost like a bus route


It’s pretty smart.

You offer a better alternative at cheaper cost to push your competition out of business, then swoop in to offer what they did to get their old holdouts
Posted by 504Voodoo
New Orleans
Member since Aug 2012
13756 posts
Posted on 8/19/21 at 10:31 am to
It has all come full circle.
Posted by AndyCBR
Baton Rouge, LA
Member since Nov 2012
8066 posts
Posted on 8/19/21 at 10:33 am to
quote:

Remember all the “brick and mortar retail is dying” talk the last few years? Interesting timing with this considering online sales, not only for Amazon, but most retailers continues to grow every year.



I wouldn't jump on the success bandwagon just yet.

Keep in mind Amazon is printing money they are so profitable. They have to spend it or give large chunks to various governments.

Their foray into the trucking and delivery business is case in point.

I hear they actually aren't a great company to work for so how they attract staff in these brick and mortar locations remains to be seen.

Posted by fallguy_1978
Best States #50
Member since Feb 2018
52854 posts
Posted on 8/19/21 at 10:34 am to
Put Sears out of business and then turn into Sears.
Posted by jamboybarry
Member since Feb 2011
33128 posts
Posted on 8/19/21 at 10:37 am to
quote:

Put Sears out of business and then turn into Sears.


Would be interesting if Amazon started selling kit houses
Posted by holmesbr
Baton Rouge, La.
Member since Feb 2012
3848 posts
Posted on 8/19/21 at 10:38 am to
Isn't their cloud web services the real money maker at Amazon? More so than the selling stuff.
Posted by Odysseus32
Member since Dec 2009
9562 posts
Posted on 8/19/21 at 10:41 am to
quote:

Do people want this? I'm no Bezos so I guess I don't understand the attraction to the added costs of operating brick and mortar. The online market was how Amazon was able to undercut the Sears and Kmarts of the world. The online format is what consumers chose. It would seem far more desirable on a broad scale yo consumers to shop on their phones from home and have their products delivered to their door in 2 days rather than carve out thr time to go browse a department store.



Exactly.

If I'm getting out of the house to buy a product, I do so with the intention of buying from a local business if at all possible.

I order the other shite from Amazon because it's convenient and not time sensitive.

I'm sure the executives have done a gargantuan amount of research that will make more sense in the coming years, but at face value its puzzling to me.
Posted by Cdawg
TigerFred's Living Room
Member since Sep 2003
61390 posts
Posted on 8/19/21 at 10:42 am to
quote:

I'm no Bezos so I guess I don't understand the attraction to the added costs of operating brick and mortar. The online market was how Amazon was able to undercut the Sears and Kmarts of the world.

They already own brick & mortars. They will become another mini-warehouse with a front. 30k SF vs 100sf type store, Not a traditional super wal-mart brick & mortar. If a driver is on route and an order comes in, they drop by, pick up from the mortar, and deliver.

There are also pushing the Go technology. If that successfully takes off in a large retail, they want to license it to every retailer.

quote:

have their products delivered to their door in 2 days

2 days? I can get same day now on items and they're trying to get to 1 hour.
Posted by haramba3
Baton Rouge
Member since Aug 2016
856 posts
Posted on 8/19/21 at 10:43 am to
I think it’s an interesting business strategy. The writing was on the wall when they bought Whole Foods. I think it’s more of them having so much cash on hand that they can afford the costs to have internet based services and brick and mortar.
Posted by DVinBR
Member since Jan 2013
15166 posts
Posted on 8/19/21 at 10:45 am to
Posted by Cdawg
TigerFred's Living Room
Member since Sep 2003
61390 posts
Posted on 8/19/21 at 10:45 am to
quote:

Would be interesting if Amazon started selling kit houses

They already sell tiny and prefab home kits.
Posted by I B Freeman
Member since Oct 2009
27843 posts
Posted on 8/19/21 at 10:46 am to
BOPIS has hit Amazon pretty good. These brick and mortar guys going BOPIS can have your stuff ready faster than Amazon can deliver it. My wife never goes in Wal Mart anymore. We had to start shopping there recently because we had to start buying groceries and stuff for an elderly member of our family that live alone. It is so much easier to simply enter the order and go pick it up.

Amazon sales of merchandise have actually been flat the last quarter or two. They continue to grow their digital products and cloud services.

I read one earnings call transcript of another retailer that claim BOPIS is about 10% of that chain's sales now.
This post was edited on 8/19/21 at 10:50 am
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