Amazon Expands Offline... Opens Department Store-Style Large Retail Outlets

In addition to own products such as clothing,
high-end brand entries are also likely
Existing department store industry on alert

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] Online retail giant Amazon is expanding its business into offline channels. The emergence of department store-style Amazon stores has put the traditional department store industry, which was hit hard by the COVID-19 pandemic last year, on high alert.

On the 19th (local time), The Wall Street Journal (WSJ), citing sources familiar with the matter, reported that Amazon plans to open large offline stores similar to department stores in the United States. Amazon’s first department store-style locations are expected to be in California and Ohio. Various items including clothing and electronics will be sold, and it is likely that both Amazon’s own brand products and luxury brands will be featured. The store size is about 30,000 square feet (approximately 2,787㎡), which is larger than other offline retail stores but smaller than other department stores such as Bloomingdale’s and Nordstrom, WSJ reported.

Amazon’s entry into the department store sector is interpreted as a move to expand its influence in the offline market after starting online. Founded in 1994 as an online bookstore, Amazon has recently opened offline bookstores, grocery stores, and convenience stores, putting pressure on the existing retail industry. Amazon also acquired the grocery chain Whole Foods Market in 2017. It is reported that Amazon began discussions with U.S. clothing brands about establishing large-scale offline stores about two years ago.

Amazon sees expansion into offline areas as particularly beneficial for selling clothing and advanced technology products. Additionally, it can be used as a showcase for online products, collect customer data, and bring innovation by providing new shopping experiences, WSJ predicted.

However, sources said that Amazon’s plan to open department store-style stores is not yet finalized and may change.

This content was produced with the assistance of AI translation services.