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

Updated: October 11, 2021
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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 and initially it will starting 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 that is 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 counter. To purchase something, a person just needs to go in, grab the thing that he or she wants to buy, and just leave without any checking herbal. An online cash receipt pops up on your phone via a message.


This article is all about the coverage of the news that WSJ has come with. Moreover, we will be going through different journals that stated this news and proposed some more information about the subject. If you want to read the whole story, you can visit the WSJ website. 


WSJ: The Details of Report


According to the report of WSJ, this time the store is going to offer something more than groceries like clothing, household items, and 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 will 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 own brands. These people said that the plan was not yet final and could be changed.




The most important thing is that there is no confirmation came up from the Amazon side about 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 attract pedestrians to malls. Now mall owners are turning 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 in the department stores industry could be a great challenge for the competitors like Walmart, Nordstrom, and Macy’s, J.C. Penney, Lord & Taylor and Neiman Marcus are the retailers that already faced bankruptcy, last year.




Physical stores estimate 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 first find the goods in the store, where they can touch and see them, then buy them online. Next, you can travel back 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 kind of 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 may assume that you may not always get your message exactly where you are.


Our Opinion


Amazon is a well-known brand and is capable to expand itself in the department store industry. The experiments like Amazon Go are being worked successfully and consumers are happy with their services. In fact, consumers are supporting them for their initiative like Amazon Go.


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