In a significant shift, Amazon.com Inc. has made the strategic decision to close its physical clothing stores just 17 months after the unveiling of the first outlet. This move reflects a redirection away from brick-and-mortar retail formats as the tech giant intensifies its focus on expanding its grocery store presence.
The two Amazon Style stores, located in Glendale, California, and Columbus, Ohio, are slated for closure by November 9, according to an announcement to employees on Thursday. Amazon spokesperson Kristen Kish shared with Bloomberg News, «After careful consideration, we’ve decided to close our two Amazon Style physical retail stores and focus on our online fashion shopping experience, where we’re offering new, exciting selections at great value and introducing innovative technology to meet the needs of every customer.»
Following the closure of various Amazon-branded physical stores last year, including bookstores and the diverse Amazon 4-Star variety mart, Amazon initially proceeded with the first Style location, which opened in May of 2022. These stores and associated corporate teams employed several hundred people, as per an insider source.
Amazon is actively collaborating with affected personnel to identify alternative roles within the company and is extending severance options to those who decline an internal transfer. Emphasizing the ongoing importance of physical retail to Amazon, Kish highlighted continued investments in the growth of their grocery stores business.
Tony Hoggett, the former Tesco Plc executive leading Amazon’s physical retail stores, has initiated a redesign effort for Amazon’s Fresh-branded grocery stores. The company plans to streamline its online grocery franchises and continue opening new supermarkets. Kish stated that revenue for Amazon’s physical stores segment, primarily from Whole Foods Market locations, rose 5.6% in the third quarter to $4.9 billion.
As Amazon strategically navigates evolving retail landscapes, this move underscores the company’s commitment to adapting its business model to align with changing consumer preferences and market dynamics. Stay informed about Amazon’s dynamic business strategies and the evolving retail landscape.
