Amazon.Com Inc is planning to open large retail stores similar to department stores in the US, according to people familiar with the matter. The first Amazon.Com Inc department stores are expected to be located in California and Ohio, covering an area of about 30, 000 square feet, about the size of Coles department stores (KSS.US) or T.J. Maxx, but still about 1/3 of the size of traditional department stores. In addition, Amazon.Com Inc will sell more clothing and technology products as well as own-brand goods through department stores. Amazon.Com Inc declined to comment.
It is reported that Amazon.Com Inc began to contact large stores with US clothing brands about two years ago, but it is not clear which brands will be purchased in these stores.
The move is Amazon.Com Inc's latest attempt at brick-and-mortar retail stores after grabbing market share from retailers through e-commerce business. In recent years, the company has opened physical bookstores, grocery stores and convenience stores without cashiers.
Amazon.Com Inc's entry into the department store will put more pressure on the struggling retail industry. Retailers such as J.C. Penney, Lord & Taylor and Neiman Marcus all filed for bankruptcy last year. JWN.US and M.US have been investing heavily to attract new customers, including opening smaller stores.
The company's share price has fallen more than 1 per cent so far this year, with a market capitalization of more than $1.6 trillion.