In its Prime: Amazon to Develop Department Stores

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By Published On: August 20, 20210 Comments

Is physical back in fashion? It's a big yes, if Amazon has anything to do with it. The retailer is now looking at developing department stores, with its sights set on California and Ohio.

The online giant, which has recently bumped Walmart off its top spot, is now looking at investing in brick-and-mortar.

Amazon, according to the Wall Street Journal,  is looking into the development of physical stores, akin to a traditional department store. This is a part of its plan to extend its product reach of clothing, consumer electronics and household items.

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The initial location for Amazon is in Ohio and California. The stores will be approximately 30,000 square feet in size. This is smaller than the typical department store layout, which in the US, is about 46,000 square feet.

via Unsplash

Amazon has already tested the physical store format with Amazon Go | via Unsplash

This, of course, isn’t the first time that Amazon has entered the physical space. In 2015, the retailer launched its first physical bookstore in Seattle, as well as its chain of convenience stores, Amazon Go, which first opened in 2018.

Similarly, Amazon owns the grocery chain, Whole Foods, which has more than 500 operating stores across the US.

Amazon has not confirmed these rumours, but it wouldn’t be a surprise if we saw the retail giant place its feet firmly on the ground of physical channels.

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