Amazon is closing all Amazon Books, its physical bookstores, and its Amazon 4-star and Amazon Pop Up stores in the US and UK. In total, the company will dispose of 68 establishments. It appears that physical businesses are no longer paying off and the company prefers to focus on areas that have proven to be more profitable.
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Amazon stores never arrived in Brazil. The company has been testing for years to enter physical retail in the United States, but it seems that the investment is no longer paying off. With the new decision, the chances of us Brazilians seeing such a store around here dropped even more.
The information was initially published by Reuters, who spoke with a spokesperson. Amazon voice. Closing dates vary by location and the company said it will help affected employees find jobs elsewhere in the company.
Workers who choose not to stay will receive severance packages, according to the company spokesperson. However, Amazon declined to share how many people will be affected by the store closures.
Closings are the quarter-result bad
The company recently launched a series of physical store concepts that blend the face-to-face experience with online technology and resources. In January, for example, Amazon announced the launch of its first physical clothing store, Amazon Style, which should arrive in the United States in 2022.
On the other hand, the 4-star Amazon that are being closed have already tried to innovate with physical store operations linked to digital, presenting the best-selling products on their marketplace in the window. However, it seems that Amazon's strategy has not worked out so far.
Sales growth from brick-and-mortar units has lagged noticeably behind the company's overall online retail business. . The company's other outlets, which include Whole Foods and Fresh supermarkets, recorded lower sales in 2021 than in 2018, the spokesperson told Reuters.
Last quarter financial results were the main reason for store closures. Amazon changed its stance after posting the lowest quarterly retail growth rates since 2001. After the figures were released, the company's stock dropped 8%. Last year, its performance on the stock market was the worst among the Big Tech group, which also includes Apple, Microsoft, Google and Meta (formerly Facebook).
According to an Amazon spokesperson , the company continues with the construction of concepts and technologies for physical retail in the long term. Thus, the plans for Amazon Style are still standing at this first moment. In addition, the company also said that it will continue to focus on supermarket chains Amazon Fresh and Whole Foods, and on the convenience store Amazon Go.
Even with low results, Amazon's physical stores they are still your laboratory for new technologies. The company has already introduced several technological experiments for retail such as the “Just Walk Out” system. Other tools include Amazon One, which allows users to scan their palms to pay for items, and Dash Carts, which are free shopping carts.Sensor tools that allow shoppers to checkout without a cashier.
With information: Reuters