Amazon confirmed the closure of its physical stores after almost a year and a half of opening its first location, as part of the changes on its physical retail strategy.
Amazon Shifts Physical Retail Strategy
Starting on November 9, two Amazon Style stores in Columbus, Ohio, and Glendale, California, will be shut down. In a released statement, Amazon spokesperson Kristen Kish attributed the decision to putting more focus on the online fashion shopping experience. The company also promised new and exciting selections at great value while integrating innovative technology to cater to the needs of every customer.
Meanwhile, other physical retail of the company will still remain such as Amazon Fresh, Whole Foods Markert, Amazon Go, and third-party partnerships. "Physical retail remains an important part of our business, and we're continuing to invest in growing our grocery stores business," Kish added.
The company opened its first store in 2022 which marked Amazon's first venture into offline selling of hawking clothes, shoes, and accessories. Employees who will be affected by the closure are welcome to transfer to other roles at the company. Employees who choose to part ways with Amazon will be offered severance.
Amazon Invests on Retail Chains
The company has been expanding its business by opening Amazon Books, 4-star, and Pop Up stores. However, the effort has been mixed success. Amazon has already closed these retail stores and has decreased some of its warehouse space. The company was also responsible for axing around 27,000 employees.
On the other hand, Kish shared that the company will open new stores and is currently working to revamp its Fresh grocery chain. The redesigned stores are both situated in Chicago.
Amazon found early success with selling apparel online varying from popular brands and private labels. This pushed the company to tap the physical retail market but has proven to be not as successful as the company hoped for.
