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Amazon Reportedly Planning to Open Department Stores

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Due to the widespread availability and competitiveness of Amazon’s services, traditional physical retail sectors have faced significant challenges in recent years. With malls and department stores struggling, Amazon is rumored to be considering repurposing vacant real estate by opening its own department stores.

An internal source at Amazon reportedly disclosed to The Wall Street Journal that the e-commerce giant is exploring the idea of launching a chain of department stores that would offer a variety of products similar to those found on the Amazon website. The initial stores are rumored to be planned in California and Ohio, with an estimated size of around 30,000 square feet, comparable to the scale of a typical TJ Maxx store but smaller than a conventional department store with multiple floors.

Amazon has chosen not to comment on these speculations, citing a policy of refraining from discussing rumors. Nevertheless, this potential move aligns with Amazon’s diversified business strategies, such as its ownership of Whole Foods and ventures into physical retail through cashier-less grocery and convenience stores. Given its financial strength and the lack of direct competition in this space, Amazon could absorb potential losses associated with operating physical stores.

According to The Wall Street Journal, the department stores could feature a range of products including clothing, electronics, and items from Amazon’s in-house brands like Amazon Basics.

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