Amazon is planning to open large retail locations that resemble department stores, according to a Wall Street Journal report.
The newspaper, citing people familiar with the plans, reported that some of the first Amazon department stores are expected to be in California and Ohio. The locations will take up roughly 30,000 square feet, around the size of a Kohl’s or T.J. Maxx location, but still 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 from incumbents with its ecommerce business. The company has opened brick-and-mortar book stores, grocery stores and cashierless convenience stores in recent years.
The department stores are expected to help Amazon sell more clothing and technology products, according to the Journal. The ecommerce giant also plans to stock its own private label goods.
Amazon’s entry into department stores would put even more pressure on an already struggling retail segment. J.C. Penney, Lord & Taylor and Neiman Marcus were among the retailers that filed for bankruptcy last year. Nordstrom and Macy’s have been investing heavily in their businesses in an effort to attract new customers, including opening smaller format stores.
