People shop at the newly opened Amazon Books on May 25, 2017 in New York.
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Amazon is closing all of its physical bookstores at Amazon Books, as well as its 4-star Amazon and Amazon Pop Up stores, which sell a variety of electronics and other hot items.
The closure affected 68 stores in the United States and the United Kingdom, Amazon said. Closing dates will vary by location, and Amazon will help affected employees find roles elsewhere in the company. Workers who choose not to stay with the company will receive compensation, Amazon said.
The news of the store closures was first reported by Reuters.
Amazon has gradually launched a range of standard concepts, from supermarkets to retail stores offering Amazon-branded electronics such as Fire tablets and Echo smart speakers. In particular, the 4-star stores tried to connect Amazon’s in-store and offline operations by presenting the best-selling products in their web store.
But Amazon’s physical store department has lagged far behind in its overall retail business in recent years. Physical stores, which include Whole Foods and Fresh stores, recorded lower sales in 2021 than in 2018.
Amazon is cutting back on its physical footprint after its slowest quarterly growth since 2001. Amazon shares have fallen more than 8% so far this year, with Big Tech performing the worst. the band last year.
An Amazon spokesman said the company “remains committed” to building long-term physical concepts and retail technologies. They said Amazon continues to open new stores and retail formats, citing Amazon’s recently launched Style stores, the company’s first foray into physical clothing stores. The company also said it would continue to focus on its Amazon Fresh and Whole Foods Market, Amazon Go convenience stores and Just Walk Out cashless technology.
Amazon has introduced other experimental retail technologies such as Amazon One, which allows consumers to scan the palm of their hand to pay for items, and Dash Carts, a shopping cart full of sensors that allows shoppers to check without a cashier. .
Amazon’s physical stores department is currently controlled by Dilip Kumar, a former “shadow” of Amazon founder Jeff Bezos.
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