Can Amazon Really Do Department Stores Better?

September 30, 2021

A chain of tech-heavy clothing stores might not move the needle on the e-commerce giant's bottom line.

Image source: Getty Images.

Key Points

  • Amazon has become the largest online retailer of apparel.
  • Its new department stores will primarily feature the e-tailer’s own clothing brands.
  • Amazon’s record with brick-and-mortar stores has not been particularly robust.
Amazon.com (NASDAQ:AMZN) is reportedly looking to begin opening its planned string of department stores as early as next year, and those locations are promising to be as tech-heavy as you’d imagine a store operated by the online retail giant would be.

Yet just because the e-commerce leader is slapping its name on a bunch of brick-and-mortar sites doesn’t mean they will be any more successful than legacy department stores are in the current sales environment. The retail sector, though much improved, is still ailing — and Amazon hasn’t shown itself to be particularly adept at operating physical stores.

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