E-commerce Giant Amazon: A Plan to Open Physical Stores in All Over the United States

Updated: September 12, 2023
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Reading Time: 8 Min
E-commerce Giant Amazon: A Plan to Open Physical Stores in All Over the United States


The news came up a few days ago in WSJ (Wall Street Journal) that the e-commerce giant Amazon is considering opening physical stores all over the US. Initially, it will start in Ohio and California. 


In 2017, we saw that Amazon came up with an idea for Amazon Go. Amazon Go is a physical grocery store fully based on Artificial Intelligence or AI, and they call this project Just Walk Out Shopping. 


The difference between Amazon Go and the other physical stores is that a person does not need to stand in a huge lane of cash counters. To purchase something, a person just needs to go in, grab the thing they want to buy, and leave without checking herbal. An online cash receipt pops up on your phone via a message.


This article is all about the news coverage that WSJ has come with. Moreover, we will review different journals that state this news and propose more information about the subject. You can visit the WSJ website to read the whole story. 


WSJ: The Details of the Report


According to the WSJ, this time, the store will offer more than groceries like clothing, household items, electronics, etc. 


The new retail space will be about 30,000 square feet, smaller than most department stores, typically about 100,000 square feet, and feature leading consumer brands. 


According to WSJ, It is unclear what brands Amazon will offer in stores, although the company's own-label products are expected to stand out, People said. Amazon sells dozens of products, including clothing, furniture, batteries, and electronics, through many of its brands. These people said the plan was not yet final and could be changed.




The most important thing is no confirmation from Amazon about the news. According to Reuters, Amazon declined to comment on that report.




According to CNBC, a spokesperson for Amazon answered in a comment to CNBC that the firm doesn’t comment on rumors and speculation. The news had a viral effect in retail, particularly affecting major rivals, with Target, Bed Bath and Beyond, and Best Buy falling roughly 1.5% over the week. Pre-marketing bidding, while Walmart shares fell about 1%.


The lessening of regular department stores has made it difficult for shopping center owners. For years, department stores have assisted in attracting pedestrians to malls. Now, mall owners turn to grocery stores, restaurants, and gyms to attract consumers. 


Judging by the size of the store that Amazon is reportedly considering, it is likely to open in strip clubs. Kohl's now has the bulk of stores in such an environment. Macy's tested small stores closer to rural shoppers with the Macy's and Bloomingdale's brands.


Moreover, CNBC stated that the entrance of Amazon into the department stores industry could be a great challenge for competitors like Walmart, Nordstrom, Macy’s, J.C. Penney, Lord & Taylor, and Neiman Marcus, the retailers already facing bankruptcy last year.




Physical stores account for over 85% of US retail sales, even with the rise in e-commerce during the COVID-19. Amazon is determined to get more of this pie. Based on recent reports, Amazon is estimated to have overtaken Walmart to become the largest retailer outside of China by the total value of goods sold. 


Businesses and professionals also often note that shoppers do not think about their purchases through separate channels. People may find the goods in the store, where they can touch and see them, then buy them online. Next, you can return to the original store to exchange the item if it doesn't work. 


The script can be more convenient for the shopper than just buying online. New Amazon stores could let you acquire a larger ecosystem of this purchasing, which other retail giants such as China's Alibaba are also working on Brand. You can use new places to immerse yourself in the shopper's life, even if you assume you may not always get your message exactly where you are.


Our Opinion


Amazon is a well-known brand capable of expanding in the department store industry. Experiments like Amazon Go are being worked successfully, and consumers are happy with their services. Consumers are supporting them for their initiative like Amazon Go.


If Amazon takes the step to enter the department store industry on a large scale, consumers will like it. The business could be a great competitor for giant departmental stores like Walmart.