Amazon It announced that it would close several locations in the United States and the United Kingdom, including its affiliated bookstores and libraries Amazon Stores 4 stars and Amazon Pop Up, which sold a variety of electronics and other fashion items. This ends some long-running retail experiences.
british news agency, Reutersbroke the news, saying it “marks a turning point for a company that started as an online bookstore and helped bankrupt well-known competitors like Borders.”
However, this does not mean the end Amazon. The company founded by Jeff Bezos said it will focus more on grocery markets and the concept of a department store in the future.
Building closed Amazon Mentioned affect about 70 stores in the United States and the United Kingdom. Closing times vary depending on your location and Amazon It said it would help affected employees find jobs in other parts of the company. He also added that workers who choose not to stay there Amazon They will be offered termination packages. Although the company declined to say how many employees would be affected by the shutdowns.
Since opening its first library in Seattle in 2015, Amazon He has different retail ideas: from supermarkets to his “4 star” stores where he sells toys, household goods and other items that are highly valued by customers in Amazon.
“Amazon He aimed to reach shoppers in more places and give his online feel to the real world. Their libraries would pull from their massive data set and show what people were reading, including the reviews they left on the site. AmazonJeffrey Dustin, a journalist for Reuters, wrote.
However, it seems that the profitability of this physical business has not been as expected since then Amazon Online shopping continues to dominate. Revenue from physical stores Amazon They barely made it to 3% of $137,000 million in sales Amazon from the last quarter. Much of this revenue is attributable to Whole Foods, Inc. store of the staples that Amazon acquired a few years ago and their chain of products Fresh but also posted their lowest selling points in 2021. Plus, they couldn’t keep up with the growth in their other retail business.
Amazon It is shrinking its physical retail footprint after shedding its slowest growth rate in any quarter since 2001. Shares of the company are down more than 8% so far this year.
However, a spokesperson said Amazon He said the company “remains committed” to building long-term physical retail concepts and technologies, noting the latter stores The way the company ventures into physical clothing stores. Amazon It also confirmed that it will continue to focus on its own supermarket chains.