Amazon announced on Thursday its decision to shutter both of its Amazon Style stores, located in Los Angeles and Columbus, Ohio.
This move marks the latest instance of Amazon abandoning its brick-and-mortar retail ventures, with the closures set to take effect next week.
Amazon’s Changing Approach to Physical Retail
The first Amazon Style store made its debut just last year at The Americana at Brand, a mall in Glendale, California. At the time, some experts speculated that Amazon’s entry into the physical retail space might pose a threat to traditional retailers like Macy’s and Kohl’s. However, Amazon’s foray into physical retail hasn’t always yielded the expected results.
Last year, the e-commerce giant closed all of its brick-and-mortar bookstores, as well as its 4-star shops and pop-up locations. Amazon justified this move by emphasizing its intention to focus on other physical business ventures, including Amazon Fresh and its Style stores.
Earlier this year, Amazon also announced the shutdown of select Amazon Fresh and Go stores that failed to meet expectations. The company has temporarily halted the expansion of Fresh supermarkets as it seeks to refine its business model for future scaling.
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Expanding Grocery Store Business
Despite these closures, Amazon remains committed to its existing brick-and-mortar businesses.
According to spokesperson Kristen Kish, “Physical retail remains an important part of our business, and we’re continuing to invest in growing our grocery stores business, which spans Amazon Fresh, Whole Foods Market, Amazon Go, and third-party partnerships.”
In August, Amazon unveiled two redesigned Amazon Fresh stores in Illinois, featuring expanded product selections, competitive pricing on a wider range of items, and enhanced convenience during checkout.
The company plans to revamp another store in Los Angeles with a similar format later this year and is working on opening 50 more Whole Foods locations.
To address the impact of the Amazon Style store closures, the company is committed to helping affected employees find new roles within the organization and offering severance packages for those who opt to depart.
As Amazon continues to navigate the evolving retail landscape, its strategy adjustments reflect the dynamic nature of the industry and the need to remain flexible and responsive to changing consumer preferences.
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