Amazon reportedly to open department stores
Get ready for another Amazon adventure. The company is reportedly planning to open large retail locations that resemble department stores, according to a report from The Wall Street Journal.
Some of the first Amazon department stores are expected to be in California and Ohio, according to the report, which follows Amazon posting strong second-quarter results at the end of July.
The locations will be roughly 30,000 sq. ft. and similar in size to Kohl’s or T.J. Maxx stores, but only about the third of a size of a traditional department store.
The move would mark Amazon’s latest experiment with physical retail stores after stealing market share in the retail landscape with its e-commerce business.
A representative for Amazon said in a statement to CNBC that the company doesn’t comment on rumors and speculation.
[Read more: Amazon brings autonomous checkout tech to newest grocery location]
In recent years, Amazon bought Whole Foods Market and has opened brick-and-mortar book stores, Amazon-branded grocery stores and cashierless convenience stores. It also launched Amazon Pharmacy in November 2020.
The department stores are expected to help Amazon sell more clothing and technology products, according to the Journal report. The newspaper reported the company started approaching U.S. apparel brands about large-scale stores about two years ago, although it’s unclear which brands would be stocked. The e-commerce giant also plans to sell its own private label goods.
According to the reports, the new stores will likely open in strip centers.
[Read more: Amazon Prime intros prescription savings benefit]