NEW YORK — Amazon is closing all of its brick-and-mortar bookstores, in addition to its 4-star outlets and pop-up places, as the web retail behemoth reworks its bodily footprint.
The Seattle-based firm mentioned Wednesday that the transfer, which impacts 66 shops within the U.S. and two in the UK, will allow it to pay attention its efforts on Amazon Recent, Complete Meals Market, its comfort idea referred to as Amazon Go and its upcoming Amazon Type shops. Amazon Type, which is able to promote vogue and equipment, is ready to open in a Southern California mall later this yr.
“We stay dedicated to constructing nice, long-term bodily retail experiences and applied sciences and we’re working intently with our affected staff to assist them discover new roles inside Amazon,” the corporate mentioned in an announcement.
It could not be discovered instantly what number of Amazon employees are being affected.
Amazon opened its first brick-and-mortar bookstore in 2015, twenty years after it started promoting books on-line and helped drive quite a lot of outlets out of enterprise. Amazon’s 4-star outlets, which first made their debut in 2018, carry a restricted choice of best-selling merchandise from high classes that Amazon.com sells, together with gadgets, client electronics, toys and video games.
The transfer comes as Amazon.com Inc.’s general income progress is slowing, and it is searching for new methods to reignite gross sales.
Neil Saunders, managing director of GlobalData Retail, mentioned the technique comes as a shock. He mentioned he believes it is an acknowledgement that the bookstores weren’t delivering the returns Amazon was searching for.
Saunders mentioned he thinks the principle downside with Amazon’s non-food shops is that they lacked an actual objective despite the fact that the merchandise was well-presented.
“They had been designed for folks to pop in and browse fairly than as locations the place folks would head on a mission to purchase one thing,” he wrote in a word on Wednesday. He famous that in the end that wasn’t good for driving buyer visitors, particularly in an period the place persons are visiting outlets much less.
Saunders added that the opposite downside is the assortment which, in lots of places, was disjoined and unfocused.
The information of the closure was first reported by Reuters.