Amazon is a company you don’t want to mess with. They are the fourth most valuable business in the world, and they’ve been the closest thing we’ve seen to becoming a monopolistic competitor. Their founder, Jeff Bezos, is essentially Rich Uncle Pennybags if you get rid of the moustache, and he has grown the online retail business at a rapid pace before stepping down this year to focus on other ventures. Let’s not forget that he’s the richest man in the world due to Amazon’s success, which speaks volumes about the company.
They aren’t finished yet, though. On Thursday, Amazon announced plans to open large brick-and-mortar retail stores that operate as department stores, per say. This is an interesting move for a company who has dominated the online retail game, which means they have further plans in their minds. The first locations are expected to be in Ohio and California, and their private-label products are what’s going to be stocked on the shelves. Amazon is already the largest seller of clothing items in the United States, so it seems like this is a move that will further kill their competitors while also bringing light to a dull industry. In the last few decades, department stores accounted for 10 percent of retail sales, and that number now sits at 1. The use of department stores has been declining before COVID even started, which means the virus can’t necessarily be the only reason why. Amazon wants to use these stores to connect better with their customers while also bringing new ones in, which I have to say is a smart move. What do you think about Amazon department stores?
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.