Amazon is setting an example for retail stores

Despite that fact that many are predicting the death of retail stores and the rise of e-commerce, Amazon is surprising the industry by investing more into brick-and-mortars. In fact, it can be said that the online shopping giant is setting the example for physical outlets.

The company still generates the majority of its revenue from its online businesses. However, it is gradually expanding its offline operations. In 2017, it announced its plans to acquire Whole Foods for $13.4 billion. Throughout the two years ever since, it has invested more in this venture to revamp the firm and make it more attractive for shoppers. For instance, it has enhanced its delivery options.

At the same time, the giant is also expanding its Amazon Go stores, both in terms of number and size. There are more and more of these cashierless outlets across the US and there are talks about opening bigger such stores, the same size as supermarkets. Moreover, Amazon has revealed that it is willing to license this cashierless technology to other retail outlets.

All of these moves give rise to the question: if e-commerce is killing physical retail, why is Amazon investing more into it? That is because consumers still value going to brick-and-mortars, especially to purchase food and groceries. Thus, convenience stores, supermarkets and service locations will not be easily replaced.

Amazon is investing more in physical retail