Amazon will shutter 68 brick-and-mortar retail places, together with all of its bookstores
Amazon confirmed reports yesterday that it will close 68 physical retail locations including all bookstores, the first of which opened to lukewarm fanfare in the tech behemoth’s hometown of Seattle in 2015. Also on the chopping block are the company’s 4-Star locations, which feature a curated selection of top-selling items from the Amazon website, and its nine themed, kiosk-style “click-and-mortar” Pop Up locations currently operating in cities including Washington, D.C., Las Vegas, West Hollywood, and Seattle. The closure also impacts Amazon’s physical retail locations located in the United Kingdom.
Reuters was the first to break the news, noting that the closures will enable Amazon to focus more on its Amazon Fresh grocery store concept, which was first launched as Amazon Go Grocery before it rebranded last year to carry the same name as its same-day grocery delivery service first piloted in New York City in 2014. Currently, Amazon Fresh stores, which harnesses the company’s Just Walk Out cashier-less checkout technology, can be found in California, Washington, Illinois, Virginia, Maryland, Pennsylvania, and Washington, D.C. Amazon Fresh operates independently from Austin, Texas-based Whole Foods Market, which Amazon acquired in 2017 for $13.17 billion.
Also not impacted by the just-announced brick-and-mortar retail closures are the smaller format, grab-and-go Amazon Go convenience stores found in a small handful of markets in Seattle, San Francisco, Chicago, and New York City.
In addition to shifting away from physical storefronts dedicated to selling books as well as top-selling toys, gadgets, and household goods to focus on expanding its grocery-centered retail emporiums, Amazon will also reportedly further develop its nascent Amazon Style concept, an apparel-focused shop complete with QR codes aplenty and touchscreen-outfitted fitting rooms. Launched in January, the first Amazon Style is set to open later this year at a shopping mall in Glendale, California.
Last August, The Wall Street Journal reported that Amazon was gearing up for a shift into smaller-format department stores, news that sent shockwaves through the dying brick-and-mortar retail sector. At the time, the company dismissed the Journal’s reporting as hearsay and declined to comment on any potential plans. However, the forthcoming arrival of Amazon Style is a sign that the company is indeed dipping its proverbial toes into new, department store-esque waters.
As noted by the Journal last summer, apparel would likely be a focal point of Amazon-operated department stores, which makes sense considering that buying clothes online (Amazon was named the top U.S. clothing retailer earlier this year) can be somewhat of a crapshoot regarding sizing, quality, and comfort. It also noted that physical Amazon department stores would “give customers even more instant gratification than the quick shipping offered by Amazon for online purchases.”
As for the just-announced closure of all Amazon Books locations, not an ounce of irony is lost in the news given that the ascent of Amazon was a major factor in the death of brick-and-mortar booksellers. (While the once-ubiquitous chains, including those found in malls, are long gone, independent booksellers in many cities continue to thrive after being nearly snuffed out.)
As reported by Reuters, Amazon Books, 4-Star, and Pop Up stores will not close all at once and instead and will be shuttered in a rolling manner depending on location. It is unclear how many employees will be impacted by the store closures.
“We remain committed to building great, long-term physical retail experiences and technologies, and we’re working closely with our affected employees to help them find new roles within Amazon,” said Amazon spokeswoman Betsy Harden in a statement shared by the New York Times, emphasizing the shift in focus to further bolstering Amazon Fresh, Amazon Go, Whole Foods Market, and Amazon Style.