E-commerce giant Amazon has announced that it is shutting down its physical bookstores, 4-Star stores and Pop-Up stores. Some of the closures would be permanent and would depend on the location. Nearly 68 stores in the United States and the United Kingdom are expected to shut down. The company will put up signs in front of the stores that would inform the customers about the closures. Amazon has not made any announcements about the actual dates, but said that it would depend on the locations.
Meanwhile, the company will be working closely with the workers who would be affected and will help them to identify new roles in the company that would include placements at the nearby Amazon Stores. The employees will also be given a choice to leave if they opt not to stay with Amazon. The company has also not disclosed as to how many employees would be affected. The recent move has been taken by the company so it could focus more on its other businesses including Amazon Go, Style, Whole Foods Market and Fresh stores.
Another major reason behind the closures of the physical store is said to be its struggle to keep up with the growth of other businesses of the company in terms of revenue. During the fourth quarter of 2021, Amazon had reported revenue of $4.69 billion compared to $66 billion from the online stores. A spokesperson from the retailer assured that the company continues to remain committed to build a great physical retail experience and technologies.
Meanwhile, the company is planning to open its first Style store In Greater Los Angeles along with a larger Amazon Go store expected to be opened in Mills Creek, Washington later in 2022. Some of the experimental retail technologies that were introduced by the company in recent times include Amazon One, which allowed users to pay by scanning of their palm of their hands and Dash Carts which is a shopping cart with sensors and allowed a cashier-less checkout.
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