Breaking News
Investing Pro 0
Free Webinar - The Role of Psychology in Trading - Thursday, December 8, 2022 | 04:00PM EST Enroll Now

Amazon to shut its bookstores and other shops as its grocery chain expands

Stock Markets Mar 02, 2022 09:31PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. People walk past an Amazon Books retail store in New York City, U.S., February 14, 2019. REUTERS/Brendan McDermid
 
AMZN
+1.71%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
TSLA
-1.06%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Jeffrey Dastin

(Reuters) -Amazon.com Inc said on Wednesday it plans to close all 68 of its brick-and-mortar bookstores, pop-ups and shops carrying toys and home goods in the United States and United Kingdom, ending some of its longest-running retail experiments.

The news, which Reuters was first to report, marks a turning point for a company that began as an online bookseller and helped drive established rivals such as Borders to bankruptcy. Amazon (NASDAQ:AMZN) said it would focus more on its grocery markets and a department store concept going forward.

After opening its first book shop in Seattle in 2015, Amazon has tried out an array of ideas in retail: convenience stores without cashiers, supermarkets, and a format called "4-star" in which it sells toys, household items and other goods with high customer ratings.

Amazon had aimed to reach shoppers in more places and bring its online touch into the real world. Its bookstores would pull from its vast data trove and showcase what people were reading, even the reviews they left on Amazon's website.

But the company's innovations were not enough to counter the march toward online shopping that Amazon itself had set off. Its "physical stores" revenue - a mere 3% of Amazon's $137 billion in sales last quarter, largely reflective of consumer spending at its Whole Foods subsidiary - has often failed to keep pace with growth in the retailer's other businesses.

Michael Pachter, an analyst at Wedbush Securities, said internet-savvy Amazon was right to forgo the niche market of brick-and-mortar book shoppers, as bad a match as electric car maker Tesla (NASDAQ:TSLA) Inc opening gas stations.

Pachter said Andy Jassy, Amazon's new chief executive, likely made this call as he reviewed the retailer's myriad businesses since taking the top job in July. "Retail is hard, and they're discovering that," he said.

The company's vice president of physical retail, Cameron Janes, departed Amazon after 14 years in November, he said in a LinkedIn post. Now chief commercial officer at retailer REI, he did not immediately return a request for comment.

Amazon will close its 4-star, pop-up and bookstore locations on various dates and notify customers via signage. Workers will receive severance or can receive help finding jobs at any company stores nearby, such as more than a dozen Amazon Fresh grocery locations it has announced, the retailer said.

Amazon declined to specify how many jobs would be cut.

Amazon to shut its bookstores and other shops as its grocery chain expands
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (5)
Тони Chuk
Тони Chuk Mar 03, 2022 3:36AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
no one wants to read:d
Mar 02, 2022 10:52PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Irony. It underscores the desire of diehard fans to save GME.
Shep De
Shep De Mar 02, 2022 7:04PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
A sign of the consumer switching interests too, from home goods, even, books, to outdoor things.Tech about to get a whole lot less popular, people tired, thank Covid, of movies, social media, books, and, yes, mobile bad console gaming, I'm speaking of the majority. phones too, 5G is really not big upgrade for majority, faster downloads and refresh rates which is good for playing intensive games but who plays intensive games on their phone?Not the majority
Ac Tektrader
Ac Tektrader Mar 02, 2022 5:09PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Amazon dehumanizing the shopping experience though greed.
Djjoshski martin
Djjoshski martin Mar 02, 2022 2:33PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
good move, too much costs associated with having a brick and morter
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email